Can financial capability improve entrepreneurial performance? Evidence from rural China

The capability of individuals to manage their finances is essential to the outcomes of their entrepreneurial activities. Using panel data from the China Household Finance Survey (C.H.F.S.) in 2013, 2015 and 2017, this article examines how financial capability affects entrepreneurial performance in rural China. The results demonstrate that financial capability is positively correlated with the scale, profitability and sustainability of entrepreneurship, which is robust in consideration of endogeneity. The effects of financial capability are heterogeneous for different entrepreneurs. Furthermore, technology, labour and land act as the mediating variables through which financial capability improves entrepreneurial performance. Therefore, to facilitate entrepreneurial success, it is important to provide entrepreneurs with financial education. Meanwhile, improvements to the financial environment should also be considered. Additionally, financial institutions should combine financial services with factors, such as technology, land and labour, to improve entrepreneurial performance

Research on the carbon emission reduction effects of green finance in the context of environment regulations

The rise in carbon emissions has significantly aggravated issues related to climate change. In light of this background, there has been a strong focus on using financial methods to reduce carbon emissions. Based on panel data for China for the period 2003– 2019, we examine the effects of green finance on carbon emissions and the moderating effects of environmental regulations. The results indicate that green finance development alleviates carbon emissions. Meanwhile, our findings on the effects of green finance policies suggest that the implementation of such policies will strengthen the carbon-emission reduction effects of green finance. Additionally, the impacts of green finance on carbon emissions are moderated by administration and public-oriented environmental regulations rather than market-oriented environmental regulations. As the biggest emitter of carbon emissions in the world, China should prioritise the consistent and steady development of green finance and facilitate the green finance legislation. Furthermore, China should enhance the role of marketoriented environmental regulations while considering the synergy between environmental regulations and green finance