Green Factory Rating and Cross-Regional Capital Flows: An Empirical Study Based on Firms’ Off-Site Investments

This paper investigates the impact of the “Green Factory” certification on firms’ off-site investment behavior, using a multi-period difference-in-differences (DID) approach based on a sample of A-share manufacturing firms listed in Shanghai and Shenzhen from 2011 to 2023. The results show that green certification significantly increases the number of cross-regional subsidiaries by approximately 7.2%. Mechanism analysis reveals that the policy promotes capital flow across regions through three main channels: increased government support, enhanced supply chain stability, and reduced transaction costs. Moreover, the policy effects exhibit significant heterogeneity across firms with different ownership types, market activity levels, technological intensity, and levels of environmental awareness. This study broadens the analytical perspective on the economic effects of green certification policies and offers policy insights for aligning green transformation efforts with the construction of a unified national market.