Government guidance funds and green transformation of enterprises

Based on the sample of Chinese government guidance funds and listed companies from 2009 to 2022, this paper discusses whether government guidance funds will affect the green transformation of enterprises. The results show that the government guidance fund significantly improves the green transformation of enterprises. Heterogeneity analysis shows that government guided funds have a more significant promoting effect on the green transformation of enterprises in state-owned enterprises, heavily polluting enterprises, and enterprises with higher financing constraints. This paper provides a new explanatory dimension for enterprises to improve green transformation, and also provides a theoretical basis for the government to further develop guidance funds.