Bank deregulation, environmental regulation and pollution reduction: evidence from Chinese firms

Xia, Yu-feng; Liu, Peisen; Huang, Guanhua

doi:10.1080/1331677x.2020.1860800

Cited by 11 publications

(8 citation statements)

References 53 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Previous studies found that the intensity of environmental regulation could impact the innovation strategy of enterprises (Kesidou and Wu, 2020). Moreover, the Chinese government emphasizes the critical role of the financial system in promoting green sustainable development and promulgates a series of green credit policies (Xia et al, 2021).…”

Section: The Role Of Environmental Regulationmentioning

confidence: 99%

“…Some argue that bank competition significantly promotes firm innovation (Amore et al, 2013;Deng et al, 2020); nevertheless, others suggest that competition in the banking sector impedes innovation by firms (Chava et al, 2013;Hombert and Matray, 2017). Xia and Liu (2021) argue that the basic reason for this lack of consensus is the competing views of the information hypothesis and the market power Regarding the literature on corporate green innovation, the drivers of green innovation have been widely discussed, such as competitive pressures from peers (Yalabik and Fairchild, 2011), customer requirements (Horbach et al, 2012), and environmental regulations (Kesidou and Wu, 2020). Financing availability has also attracted attention from scholars.…”

Section: Introductionmentioning

confidence: 99%

“…Kesidou and Wu (2020) observe that a stricter environmental regulatory and invest more in pollution abatement. This effect is more pronounced if stricter environmental regulation is implemented by the Chinese government (Xia et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Does Bank Competition Promote Corporate Green Innovation? Evidence from the Location of Bank Branches

Xia

Liu

2022

China and World Economy

Self Cite

View full text Add to dashboard Cite

Based on the geographic coordinates of bank branches and firms, this study analyzes the impact of firm‐level bank competition on corporate green innovation and its underlying mechanisms. The findings of this study are mainly as follows. First, bank competition promotes corporate green innovation by reducing transaction costs, increasing the possibility and quantity of firms applying for green patents. Second, bank competition increases the share of green innovation while reducing the share of nongreen innovation. Third, environmental regulation strengthens the promotion effect of bank competition on corporate green innovation, and the strengthening effect is greatest when environmental regulation is between its 50th and 75th quantile. The proportion of state‐owned banks weakens the promotion effect of bank competition on corporate green innovation. This paper is helpful to understand the impact of the banking system on sustainable economic development.

show abstract

Section: The Role Of Environmental Regulationmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Does Bank Competition Promote Corporate Green Innovation? Evidence from the Location of Bank Branches

Xia

Liu

2022

China and World Economy

Self Cite

View full text Add to dashboard Cite

show abstract

“…Kamran et al (2019) measure the HHI by taking the sum of squares of the percentage of total deposits across all banks. The measurement of HHI is widely used to describe competition in the banking system in previous literature (Xia et al, 2021). Thus, the HHI is a proxy to be used in this study for the level of Islamic bank competition.…”

Section: Literature Reviewmentioning

confidence: 99%

Bank Specific and Macroeconomic Factors Influencing Islamic Banks Deposits

Rahman

Ahmad

Arshad

2021

International Journal of Islamic Business

View full text Add to dashboard Cite

Deposits are like the bloodline for banks as they determine banks' lending capacity and a country's economic savings. However, the existence of a dual banking system poses a challenge to Malaysian Islamic banks competing for deposits. Despite this problem, few investigations were done to comprehensively identify the factors that could help banks attract deposits, particularly for Islamic banks. The purpose of this paper is to fill this gap on deposits of 16 Islamic banks in Malaysia. Secondary data from the bank's annual reports and the Department of Statistics of Malaysia from 2015 to 2019 were analyzed, comprising Islamic Bank Deposits and seven predictors in an empirical model using STATA. The result shows a strong model fit with 92% R squared value that Return on Assets, bank concentration, and Business Enterprise Depositor affect Islamic Bank Deposits positively and significantly while Capital Adequacy Ratio showed negative and significant influence on the deposits. These factors are strongly effective to deposits, significant at 1% level. In contrast, Financing Deposit Ratio and Gross Domestic Product do not significantly influence Islamic deposits. Contrary to economic theory, this study found that an increase in inflation encourages customers to increase their saving deposits in Malaysian Islamic banks. The findings from this study are unique to Malaysian Islamic banks. They indicate important policy implications for Islamic banks practitioners, namely, to increase their focus on business enterprise customers, improve bank's market share and profitability in order to increase deposits while taking advantage of high inflationary period to attract more depositors.

show abstract

“…In additon, great progress has been made in the research on the impact of environmental regulation on corporate pollution emissions. Some scholars advocate the "reverse forcing effect" and believe that environmental regulation can promote corporate pollution reduction (Du and Li, 2020;Xia et al, 2020). Some literature also believes that the environmental regulation of local governments in China does not have a signi cant inhibitory effect on pollution emissions, and mainly exerts the "green paradox effect".…”

Section: Introductionmentioning

confidence: 99%

The effects of heterogeneous environmental regulation on the effectiveness of corporate green investment in China

2022

Preprint

View full text Add to dashboard Cite

The issue of effectiveness is concerning when the entereprise comes to making green investment decisions facing environmental regulations. Existing literature ignores the research on the impact mechanism of different environmental regulations on the effectiveness of corporate green investment (ECGI). Based on the data of listed companies in China's heavily polluting industries from 2017 to 2021, this paper used the data envelopment analysis (DEA) model to measure the ECGI. Then, the influence mechanism of two types of environmental regulation on the ECGI was analyzed. The results show that the ECGI for listed companies in heavily polluting industries is generally low, and the gap between companies is large. Different types of environmental regulations exert heterogeneous effects on the ECGI. Environmental taxes and environmental subsidies have an inverted U-shaped and negative impact on the ECGI respectively, and this impact is particularly significant in non-state-owned enterprises and small-scale enterprises. The mechanism test shows that the environmental tax has a “forcing” effect on the ECGI, which is manifested in the fact that enterprises improve the ECGI through source governance. Environmental subsidies have a “crowding out” effect on the ECGI, which is manifested in the fact that enterprises inhibit the ECGI by increasing the redundancy of green investment.

show abstract

Bank deregulation, environmental regulation and pollution reduction: evidence from Chinese firms

Cited by 11 publications

References 53 publications

Does Bank Competition Promote Corporate Green Innovation? Evidence from the Location of Bank Branches

Does Bank Competition Promote Corporate Green Innovation? Evidence from the Location of Bank Branches

Bank Specific and Macroeconomic Factors Influencing Islamic Banks Deposits

The effects of heterogeneous environmental regulation on the effectiveness of corporate green investment in China

Contact Info

Product

Resources

About