Beschreibung:
This paper investigates the effect of low-carbon city pilot (LCCP) policy on firm financialization. We find that the implementation of LCCP policy improves the level of firm financialization, and the promotion effect is pronounced in enterprises having lower cash holdings and non-state-owned enterprises (non-SOEs). Further research indicates that the enterprises holding financial assets can better smooth investment volatility under the impact of LCCP policy. The asymmetry of the smooth effect is stronger when encountering the underinvestment, which means the enterprises holding financial assets is more likely out of saving motive and financial assets play a greater role of the “reservoir”