Environmental regulation and corporate cash holdings: evidence from China’s new Environmental Protection Law

• Main Authors: Zhang, Chao, Cheng, Jinkai
• Other Authors: Nanyang Business School
• Format: Article
• Language: English
• Published: 2022
• Subjects: Social sciences::Economic theory; Environmental Regulation; Cash Holdings
• Online Access: https://hdl.handle.net/10356/163182
• Institution: Nanyang Technological University

Exploiting the 2014 Environmental Protection Law (EPL) in China as quasi-natural experiments, we adopt a difference-in-differences approach to examine the impact of environmental regulation on corporate cash holdings. We document that heavy-polluting firms increase their cash holdings 15% more than...