Nexus of Political Connections with Green Financial Development and Fiscal Performance
DOI:
https://doi.org/10.54097/fbem.v3i1.221Keywords:
Green finance development, Fiscal and tax policy, Sustainable development; Political connection, Business PerformanceAbstract
Green finance is an important guarantee to promote the development and structural transformation of green industries in China and is also the power source to implement the concept of green development during the "13th Five-Year Plan". The development of green finance is inseparable from the support of financial and taxation policies. Based on this background, there is a certain connection between green finance and corporate values. When companies strengthen their political relations, there will be certain positive and negative effects on the company's future development. Green development should be the goal, and the financial and tax performance of companies should be enhanced in strengthening the development of green finance. The most important thing for companies, regardless of the industry, is to interact with the government to improve their development goals and performance, maintain their rights and interests through political relations and policies, and obtain government support to achieve sustainable development of the company. Therefore, this study focuses on the political relationship between green finance development and financial performance and examines the intervention of political ties on corporate green investment and corporate performance. The results confirm that politically connected companies have more resources and protect the natural environment while improving their financial performance.
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