Greening the Bottom Line: Public Funding for Circular Economy Initiatives and Financial Stability

ABSTRACT Public funding for circular economy (CE) initiatives plays a crucial role in shaping corporate financial performance, yet its effects remain underexplored. Grounded in the resource‐based view (RBV) of the firm, this study investigates the financial impact of CE funding on private firms, using Portugal as a case study. It analyses the financial outcomes of companies receiving funding for circular practices under the Portugal 2020 program in contrast to those supported in other areas, pro