Capital Market Liberalization and Firms'Green Total Factor Productivity——Evidence from MSCI's Inclusion of Chinese A-shares
The improvement of corporate green total factor productivity(GTFP)is a crucial aspect of achieving high-quality and sustainable development in China's macroeconomy and enterprises.This study estimates firms'GTFP using the Super-SBM model.Using the exogenous event of the inclusion of A-share stocks in the MSCI index,this paper selects the sample period 2015 to 2020 and employs the difference-in-difference method to establish a causal link between the capital market opening on firms'GTFP.The results indicate that capital market opening reduces firms'GTFP.The mechanism suggests that capital market opening suppresses firms'GTFP by exacerbating managerial myopia and increasing market performance pressure.Moreover,the negative effects are primarily observed in heavily polluting industries,regions with lower environmental regulation intensity,and areas where enterprises contribute significantly to the regional economy.Our findings suggest that the current opening of China's capital market poses risks to the short-term transformation and upgrading of Chinese industrial enterprises,offering insights for optimizing future opening policies.
Capital Market OpeningFirms'Green Total Factor ProductivityMSCI IndexMarket Performance PressureManagerial Myopia
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