Financing Conditions and Toxic Emissions

Goetz, Martin

doi:10.2139/ssrn.3411137

Cited by 37 publications

(13 citation statements)

References 10 publications

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“…This can stimulate enterprise vitality, increase R&D investment, and promote the improvement of green technology innovation level (Han, 2020). Goetz (2019) also confirmed that green credit can reduce the long-term debt financing cost of enterprises based on the data of American enterprises, thus promoting the green technology research and development of enterprises.…”

Section: Discussionmentioning

confidence: 80%

Does green finance promote enterprises’ green technology innovation in China?

Jiang

Liu

et al. 2022

Front. Environ. Sci.

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In the carbon neutrality strategy, understanding the effects of green finance on green technology innovation is conductive to promoting the green transformation of the economy. Based on the micro-level and provincial panel data of Shanghai and Shenzhen A-share listed companies from 2012 to 2019, this study explored the impact of green financial development on the enterprises’ green technology innovation. Both mediating effect and moderating effect models were employed to determine the impact of green finance on green technological innovation. It was found that green finance significantly improved the enterprises’ green technology innovation, despite sufficient incentives for “quantity” and relatively insufficient motivation for “quality”. The mechanistic tests demonstrated that the green finance could encourage enterprises to improve green technology innovation by alleviating corporate financing constraints. The green innovation effect of green finance was gradually increased when the regional intellectual property protection was improved. The heterogeneity test indicated that the incentive effect of green financial development on green technology innovation was more evident in state-owned enterprises, enterprises with good internal control quality, and enterprises in the growth period. If only enterprises in the recession stage received green financial support, a “green innovation bubble” might occur. The research conclusions enrich the theories on the driving factors of enterprise green innovation and provide empirical evidence for enhancing the competitiveness of enterprise green innovation and achieving carbon neutrality.

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Section: Discussionmentioning

confidence: 80%

Does green finance promote enterprises’ green technology innovation in China?

Jiang

Liu

et al. 2022

Front. Environ. Sci.

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“…In particular, Levine, Lin, Wang and Xie (2018) show how positive credit supply shocks in U.S. counties-due to fracking of shale oil in other countiesreduce local air pollution. In a similar vein, Goetz (2019) finds that financially constrained firms reduced toxic emissions when their capital cost decreased as a result of the U.S. Maturity Extension Program.…”

Section: Introductionmentioning

confidence: 87%

Managerial and Financial Barriers to the Net Zero Transition

Martin¹,

Haas²,

Muûls³

et al. 2021

SSRN Journal

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We use data on 11,233 firms across 22 emerging markets to analyze how credit constraints and low-quality firm management inhibit corporate investment in green technologies. For identification we exploit quasi-exogenous variation in local credit conditions and in exposure to weather shocks. Our results suggest that both financial frictions and managerial constraints slow down firm investment in more energy efficient and less polluting technologies. Complementary analysis of data from the European Pollutant Release and Transfer Register (E-PRTR) corroborates some of this evidence by revealing that in areas where banks deleveraged more after the global financial crisis, industrial facilities reduced their carbon emissions by less. On aggregate this kept local emissions 15% above the level they would have been in the absence of financial frictions.

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“…So, the short-term policy impact is stronger than the long-term one. Second, firms will gradually engage in green innovation, increase environmental expenditures, and seek to transform into an energy-saving, green, and low-carbon production model in the long run, so as to mitigate the policy impacts ( Goetz, 2019 ; He et al, 2019 ).…”

Section: Robustness Checksmentioning

confidence: 99%

Green Credit Policy and Corporate Stock Price Crash Risk: Evidence From China

et al. 2022

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Using the promulgation of Green Credit Guidelines in China as the research setting, this paper exploits a quasi-natural experiment to examine the impact of green credit policy on the stock price crash risk of heavy-polluting firms. The results show that green credit policy significantly increases the risk of stock price crash of heavy-polluting firms. Such impact is transmitted through increased financial constraints and reduced information transparency. In addition, we find that the impact of green credit policy on the stock price crash risk is more pronounced in firms with weak external governance and a small size. Our findings provide policy implications for mitigating corporate risks and promoting corporate sustainability.

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Financing Conditions and Toxic Emissions

Cited by 37 publications

References 10 publications

Does green finance promote enterprises’ green technology innovation in China?

Does green finance promote enterprises’ green technology innovation in China?

Managerial and Financial Barriers to the Net Zero Transition

Green Credit Policy and Corporate Stock Price Crash Risk: Evidence From China

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