Abstract Based on panel data of Chinese A-share listed companies from 2008 to 2020, this study explores the impact of carbon emissions trading system on corporate earnings sustainability by constructing a difference-in-differences model. It is found that the carbon emissions trading system can significantly improve the sustainability of corporate earnings. The mechanism study finds that carbon emissions trading system exerts a signal transmission effect, alleviates financing constraints for enterprises to obtain green investor support, and improves the sustainability of corporate earnings. At the same time, the carbon emissions trading system plays a governance role, increasing corporate earnings sustainability by promoting corporate green innovation and reducing corporate green agency costs. Heterogeneity study finds that in areas with strong public awareness of environmental protection, high-marketization areas, low-carbon emission industries and state-owned enterprises, the carbon emissions trading system exerts a more significant promoting effect on corporate earnings sustainability.
GUO Xiaoxu,ZHANG Rao. Research on the Impact of Carbon Emission Trading System on Corporate Earnings Sustainability[J]. Chinese Journal of Management, 2025, 22(5): 908-.
