Which uncertainty measures matter for corporate financialization? Evidence from China intensive polluted industries
Corporate financialization in intensively polluting industries has become a critical factor in understanding the intersection of financial behaviour and sustainable development. This study investigates which specific forms of uncertainty including economic policy, monetary policy, trade policy, and...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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Cogent OA
2025
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| Online Access: | http://psasir.upm.edu.my/id/eprint/120874/ http://psasir.upm.edu.my/id/eprint/120874/1/120874.pdf |
| _version_ | 1848868235066212352 |
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| author | Wang, Mingyao Mohd Nor, Normaziah Abdul Rahim, Norhuda Khan, Faisal Cheng, Yuxiang |
| author_facet | Wang, Mingyao Mohd Nor, Normaziah Abdul Rahim, Norhuda Khan, Faisal Cheng, Yuxiang |
| author_sort | Wang, Mingyao |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | Corporate financialization in intensively polluting industries has become a critical factor in understanding the intersection of financial behaviour and sustainable development. This study investigates which specific forms of uncertainty including economic policy, monetary policy, trade policy, and oil price uncertainty can significantly influence financialization within China’s intensively polluting sectors. Utilizing a panel dataset of Chinese A-share listed companies from 2011Q1 to 2022Q4, this study applies Principal Component Analysis (PCA) to construct a multidimensional index of financialization, followed by panel regression analysis. Findings reveal that global economic policy uncertainty exerts the most significant impact on corporate financialization in these industries. Furthermore, financing constraints negatively moderate this relationship, while Environmental, Social, and Governance (ESG) practices have positive moderating effects. Firms with higher managerial overconfidence exhibit increased levels of financialization. Additionally, heterogeneity exists across firms, with those incurring higher environmental protection fees, non-state-owned enterprises, and firms based in developed eastern regions displaying elevated financialization levels. Diversification and external monitoring also positively influence this relationship. Robustness tests confirm the consistency of these findings, providing valuable insights for firms seeking to strategically leverage ESG, financial technology (FinTech), and financialization practices in response to fluctuating uncertainties. |
| first_indexed | 2025-11-15T14:49:10Z |
| format | Article |
| id | upm-120874 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T14:49:10Z |
| publishDate | 2025 |
| publisher | Cogent OA |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-1208742025-10-14T04:32:53Z http://psasir.upm.edu.my/id/eprint/120874/ Which uncertainty measures matter for corporate financialization? Evidence from China intensive polluted industries Wang, Mingyao Mohd Nor, Normaziah Abdul Rahim, Norhuda Khan, Faisal Cheng, Yuxiang Corporate financialization in intensively polluting industries has become a critical factor in understanding the intersection of financial behaviour and sustainable development. This study investigates which specific forms of uncertainty including economic policy, monetary policy, trade policy, and oil price uncertainty can significantly influence financialization within China’s intensively polluting sectors. Utilizing a panel dataset of Chinese A-share listed companies from 2011Q1 to 2022Q4, this study applies Principal Component Analysis (PCA) to construct a multidimensional index of financialization, followed by panel regression analysis. Findings reveal that global economic policy uncertainty exerts the most significant impact on corporate financialization in these industries. Furthermore, financing constraints negatively moderate this relationship, while Environmental, Social, and Governance (ESG) practices have positive moderating effects. Firms with higher managerial overconfidence exhibit increased levels of financialization. Additionally, heterogeneity exists across firms, with those incurring higher environmental protection fees, non-state-owned enterprises, and firms based in developed eastern regions displaying elevated financialization levels. Diversification and external monitoring also positively influence this relationship. Robustness tests confirm the consistency of these findings, providing valuable insights for firms seeking to strategically leverage ESG, financial technology (FinTech), and financialization practices in response to fluctuating uncertainties. Cogent OA 2025 Article PeerReviewed text en cc_by_4 http://psasir.upm.edu.my/id/eprint/120874/1/120874.pdf Wang, Mingyao and Mohd Nor, Normaziah and Abdul Rahim, Norhuda and Khan, Faisal and Cheng, Yuxiang (2025) Which uncertainty measures matter for corporate financialization? Evidence from China intensive polluted industries. Cogent Economics and Finance, 13 (1). art. no. 2449190. pp. 1-29. ISSN 2332-2039 https://www.tandfonline.com/doi/full/10.1080/23322039.2024.2449190 10.1080/23322039.2024.2449190 |
| spellingShingle | Wang, Mingyao Mohd Nor, Normaziah Abdul Rahim, Norhuda Khan, Faisal Cheng, Yuxiang Which uncertainty measures matter for corporate financialization? Evidence from China intensive polluted industries |
| title | Which uncertainty measures matter for corporate financialization? Evidence from China intensive polluted industries |
| title_full | Which uncertainty measures matter for corporate financialization? Evidence from China intensive polluted industries |
| title_fullStr | Which uncertainty measures matter for corporate financialization? Evidence from China intensive polluted industries |
| title_full_unstemmed | Which uncertainty measures matter for corporate financialization? Evidence from China intensive polluted industries |
| title_short | Which uncertainty measures matter for corporate financialization? Evidence from China intensive polluted industries |
| title_sort | which uncertainty measures matter for corporate financialization? evidence from china intensive polluted industries |
| url | http://psasir.upm.edu.my/id/eprint/120874/ http://psasir.upm.edu.my/id/eprint/120874/ http://psasir.upm.edu.my/id/eprint/120874/ http://psasir.upm.edu.my/id/eprint/120874/1/120874.pdf |