The Impact of Environmental Regulations on Investment Decisions of Financial Institutions
DOI:
https://doi.org/10.54097/r40x8m76Keywords:
Environmental laws and regulations; Financial institutions; Investment decisions; ESG; Sustainable development.Abstract
With the warming of the global climate, the problem of environment or pollution has been widely concerned by scholars. The formulation and implementation of environmental laws and regulations affect the important development of social economy. This paper mainly studies the impact of environmental regulations on investment decisions of financial institutions, and the core of the research question is to explore how environmental regulations guide financial institutions to adjust their decisions and operations. This paper analyzes a large number of relevant existing literature and case studies, and the research results shows that the formulation and implementation of environmental regulations have a significant impact on the operation mode of financial institutions, prompting financial institutions to pay more attention to their environmental impact when making decisions, and tend to invest in projects that comply with the principles of sustainable development, so as to achieve a win-win situation of economic and environmental benefits.
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