Credit policy, uncertainty, and firm R&amp;D investment: A quasi-natural experiment based on the Green Credit Guidelines

Zhang, Dongyang; Kong, Qunxi

doi:10.1016/j.pacfin.2022.101751

Cited by 59 publications

(24 citation statements)

References 27 publications

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“…The one strand is from literature in terms of the environmental investment and innovation activities. After environmental policy implemented, firms are found to pay much more investment in environmental governance (Chang et al, 2015), and environmental R&D expenditure (Costa‐Campi et al, 2017; Zhang & Kong, 2022), thus building good environmental images. In addition, environmental policy plays an important role in enhancing environmental innovation (Bergek et al, 2014; Galeotti et al, 2020), green technological innovation (Liu et al, 2020), while stricter policy has a stronger impact on firm's environmental innovation (Lv et al, 2020).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…In addition, academics also focus on the impact of environmental regulations on corporate environmental performance. The adoption of environmental policies can encourage and motivate firms to participate more actively in environmental investment and innovation activities (Bergek et al, 2014; Chang et al, 2015; Costa‐Campi et al, 2017; Galeotti et al, 2020; Liu et al, 2020; Lv et al, 2020; Zhang & Kong, 2022), and impel firms to reduce pollution discharges and emissions (Anton et al, 2004; Arimura et al, 2008; Haque & Ntim, 2018).…”

Section: Introductionmentioning

confidence: 99%

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How does green credit policy improve corporate social responsibility in China? An analysis based on carbon‐intensive listed firms

Chen

Wang

et al. 2022

Corp Soc Responsibility Env

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For China to become carbon neutral, green financing is seen as a crucial avenue, wherein the green credit policy, which was introduced in 2012, is a crucial tool. However, whether the policy would work and how to improve its effectiveness remain unknown. This study attempts to analyze the policy's effects on carbon performance, a crucial measure of Corporate Social Responsibilities (CSR), particularly in carbon‐intensive industries, using a sample of Chinese listed companies from 2009 to 2018. As a result, first, it's confirmed that the policy can boost carbon performance of carbon‐intensive firms. Additionally, this study has verified that firm's R&D investment intensity has no mediating role in the relationship between the policy and carbon performance, while debt financing cost partly mediating the relationship, implying the policy fails to stimulate technological innovation. Moreover, firms with stronger environmental regulation intensity, weaker financing constraints, poorer corporate governance and more analyst following have greater promotion in carbon performance after the policy execution. Finally, the policy significantly improves the quality of corporate environment information disclosure. Briefly, this study enriches theoretical grounding regarding strategies of green reform in carbon‐intensive industries and provides implications for emerging economies to improve green finance via enhancing CSR.

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Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

How does green credit policy improve corporate social responsibility in China? An analysis based on carbon‐intensive listed firms

Chen

Wang

et al. 2022

Corp Soc Responsibility Env

View full text Add to dashboard Cite

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“…From the macro perspective, green credit can change the flow of funds. It enables financial institutions to provide preferential loan interest rates and increase loan quotas for energy-saving enterprises and environmental protection enterprises, but truncate part credit funds of two-high enterprises (Chai et al, 2022;Zhang and Kong, 2022). Therefore, energy-saving enterprises and environmental protection enterprises can obtain sufficient funds to continuously improve the implementation of environmental protection projects (Cui et al, 2022).…”

Section: The Direct Effect Of Green Credit On Ecological Welfare Perf...mentioning

confidence: 99%

Research on the effect of green credit on ecological welfare performance: Evidence from China

Zhang

Cao

et al. 2022

Front. Environ. Sci.

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Achieving high-quality economic development is a crucial feature of China’s new development stage. As an environmental regulation tool by implementing a differentiated credit policy, green credit is an inevitable choice to achieve high-quality economic development. In this paper, ecological welfare performance is used to measure the level of high-quality economic development. And based on the panel data of 30 provinces during 2008–2019, the spatial Durbin model and mediating effect model are used to empirically study the direct and indirect effect of green credit on ecological welfare performance in China. The results show that: (1) China’s ecological welfare performance shows the positive global spatial correlation in the overall spatial scope, with local characteristics of high–high aggregation and low–low aggregation. (2) Green credit can significantly promote the ecological welfare performance of local regions, but has a negative spatial spillover effect on the ecological welfare performance of adjacent regions. (3) Green credit can boost ecological welfare performance by improving technological innovation, industrial structure upgrading, and energy consumption structure. Based on these conclusions, the policy recommendations are put forward.

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“…The study concluded that a green credit policy can reduce borrowing-firm performance in heavily polluting industries. Zhang and Kong [36] found that a green credit policy is not conducive to innovation in highly polluting and overcapacity industries. Our paper contributes to this field of literature by applying a green lending policy to determine bank interest margins under sunflower management.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Bank Interest Margin and Green Lending Policy under Sunflower Management

Lin

2022

Sustainability

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Sunflower management is a type of management style in which a chief executive officer (CEO) ignores information and attempts to confirm the board’s prior beliefs. The CEO’s accommodating behavior may reduce incentive conflicts but also stimulate diligent board monitoring. The present article aims to develop a contingent claim utility model to investigate the effect of green lending on bank spread behavior and board monitoring under sunflower management. The principal advantage of the contingent claim utility approach is the explicit treatment of uncertainty and diligent board monitoring, which play a prominent role in discussions of intermediary behavior. Additionally, banks may earn goodwill from a green lending policy, thus yielding environmental improvements. In this study, we explore the goodwill effect on the bank’s interest margin determination and board monitoring. We use the comparative statistics method to analyze the result of changes in the theoretical model’s exogenous parameters. Moreover, we use empirical data as a baseline for numerical simulations to explain the comparative statistics. Our main findings are that increasing green lending reduces interest margins and enforces diligent board monitoring. The increase in goodwill garnered from improvements to the bank’s green lending reputation was found to enhance the interest margins but ease active board monitoring. From these results, we outline implications such as implementing intangible goodwill asset accumulation from bank customers’ green awareness via green lending publicity that increases the bank interest margin under sunflower management, thereby affecting banking stability.

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Credit policy, uncertainty, and firm R&D investment: A quasi-natural experiment based on the Green Credit Guidelines

Cited by 59 publications

References 27 publications

How does green credit policy improve corporate social responsibility in China? An analysis based on carbon‐intensive listed firms

How does green credit policy improve corporate social responsibility in China? An analysis based on carbon‐intensive listed firms

Research on the effect of green credit on ecological welfare performance: Evidence from China

Bank Interest Margin and Green Lending Policy under Sunflower Management

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