Replication Data for: Impacts of Heterogeneous Participation in Green Factory on Firms’ Risk-Taking Capacity: Evidence from Chinese Enterprises

Corporate choices to engage in the government’s voluntary environmental regulations can impact their performance and willingness to take risks. The impact of government intervention on the benefits firms gain from environmental regulations is still uncertain. This study analyzes the impact of China’s Green Factory Pilot Policy on corporate risk-taking capacity through a quasi-natural experiment. Our findings indicate that the Green Factory Pilot Policy improves corporate risk-taking abilities. This effect comes from several channels, such as enhancing innovation and compliance, improving corporate reputation, attracting green investment, and strengthening corporate governance. We estimate the marginal treatment effect of the policy on firms and find that those in regions with more government economic intervention show lower risk-taking capacity during implementation. This study adds to the understanding of how environmental policies relate to corporate financial constraints, highlighting the ways the Green Factory Policy influences corporate risk-taking and its varied effects.This research enhances academic insight into the economic effects of environmental policies and provides useful guidance for governments in shaping and improving these policies.