Author(s)

Lvcen Hong ¹

Affiliation(s)

¹ Hubei University of Economics, Wuhan, Hubei, 430205, China

Corresponding Author

Lvcen Hong

ABSTRACT

Using the "Three Red Lines" policy as a quasi-natural experiment, the article empirically examines the impact of the proposed policy on the ESG performance of real estate firms by using the double-difference method with the Shanghai and Shenzhen A-share real estate listed firms as the research sample during the 22-quarter period before and after the policy was proposed, and using the CSI ESG index as the explanatory variable of the study. The CSI ESG index is used as the explanatory variable of the study. The results show that the introduction of the "three red lines" significantly reduces the ESG performance of real estate companies, and the experimental group and the control group also pass the parallel trend test and the robustness test. The impact of the policy on private firms is much larger than that on state-owned firms, and the ESG performance of firms with fewer SA financing constraints is also less affected by the policy.

KEYWORDS

Three red lines; real estate; ESG performance; double differences

CITE THIS PAPER

Lvcen Hong, The Impact of the "Three Red Lines" Policy on the ESG Performance of Real Estate Companies. Financial Engineering and Risk Management (2024) Vol. 7: 70-76. DOI: http://dx.doi.org/10.23977/ferm.2024.070509.

REFERENCES

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[2] Yuan Dong. Impact of "Three Red Lines" Policy on Credit Risk of Real Estate Enterprises [J]. Journal of Harbin Institute, 2023, 44(12):35-40.
[3] Wan Xiaoli, Zhang Bingtao, Zhang Donghao. Sales differentiation of real estate enterprises under deleveraging policy and its impact on debt risk [J]. Finance and Trade Economics, 2023, 44(08):56-73.
[4] Guo Wei, Kang Wenyi. ESG performance, digital finance and corporate green technology innovation [J/OL]. Finance and Accounting Monthly: 1-6[2024-09-04].
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