Browsing by Subject "Green credit policy"

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Open Access
Green credit policy and corporate productivity: Evidence from a quasi-natural experiment in China
(Elsevier Inc., 2022-02-01) Cui, X.; Wang, P.; Şensoy, Ahmet; Nguyen, D. K.; Pan, Y.
Taking the implementation of the “Green Credit Guidelines” in China in 2012 as an exogenous shock, we adopt the difference-in-differences (DIDs) method to explore the influence of the green credit policy on total factor productivity (TFP). We show evidence of a significant and positive correlation between green credit and corporate total factor productivity, and this result is robust to a series of robustness tests. In addition, the improvement is particularly evident for non-SOEs, small-scale firms, firms with weak external supervision, and firms in developed areas of eastern China. Moreover, the green credit policy mainly affects corporate total factor productivity through promoting technological innovation and enhancing resource allocation efficiency. Overall, green credit promotes the win-win development of the environment and the economy.
Open Access
Green credit policy and firm performance: What we learn from China
(Elsevier BV, 2021-09) Yao, S.; Pan, Y.; Şensoy, Ahmet; Uddin, G. S.; Cheng, F.
We explore the effect of green credit policy on firm performance of listed firms in China. We find that green credit policy reduces firm performance in heavily polluting industries. This effect is more prominent in state-owned enterprises, firms with large size, high institutional ownership, high analyst coverage and during high economic policy uncertainty period. Moreover, we observe that green credit policy decreases heavily polluting firms' performance by increasing firm financing constraints and decreasing investment level. Our results help to restrain heavily polluting enterprises and promote industrial transformation in developing markets.