Green credit policy and investment-cash flow sensitivity: Evidence from a quasi-natural experiment

Zhao, Jing; Huang, Jingchang; Liu, Feng

doi:10.1016/j.frl.2022.103502

Cited by 21 publications

(5 citation statements)

References 21 publications

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“…Additionally, the most effective method is to use the Heckman two-stage estimation method with instrumental variables. Drawing on the research of Zhao, et al 59 , Zhang and Kong 60 , this paper constructs instrumental variables using the ratio of provincial GDP to financial institution deposits.…”

Section: Endogeneity and Robustnessmentioning

confidence: 99%

Research on the impact of ESG performance on carbon emissions from the perspective of green credit

Kong,

Li,

Lei

2024

Sci Rep

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Utilizing panel data from 30 Chinese provinces, this research examines the non-linear relationship between regional environmental, social, and governance (ESG) performance and carbon emissions (CE) from the viewpoint of green credit. The study reveals a single threshold effect between ESG performance and CE, with green credit acting as the threshold variable. When the amount of green credit in a region exceeds the threshold, the growth rate of CE in that region begins to decline with higher ESG scores. Furthermore, green credit acts as a catalyst, playing a negative moderating role between ESG performance and CE, validated by both threshold regression and fixed effects models on panel data. Green credit indirectly influences carbon emissions by supporting green innovation, thus facilitating the transition to a greener economic development framework. Lastly, regional disparities are found in the moderating influence of green credit between ESG performance and CE. In regions with high ESG performance, the moderating impact of green credit is smaller, while in regions with low ESG performance, the effect is more significant. The research findings offer theoretical backing for policymakers regarding the efficacy of ESG in achieving carbon neutrality objectives, and offer valuable strategic recommendations for the diversified formulation of green credit strategies on both national and provincial scales. Regional heterogeneity test results provide valuable support for formulating policies that encourage green credit in provinces with low ESG performance.

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Section: Endogeneity and Robustnessmentioning

confidence: 99%

Research on the impact of ESG performance on carbon emissions from the perspective of green credit

Kong,

Li,

Lei

2024

Sci Rep

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“…Studies have shown that a company's ISO 14001 certification, which requires businesses to mitigate the effects of their activities, reflects strong environmental performance (Tian and Lin, 2019). Yuan et al, (2022) and Zhao et al, (2023) also used a dummy variable to measure environmental performance, where highly polluting companies get one while other companies get zero. some other studies (Heras-Saizarbitoria et al, 2011) have employed third-party certification as a measure of a company's environmental performance.…”

Section: Company's Environmental Performancementioning

confidence: 99%

“…By more effectively allocating capital to environmentally friendly businesses and reducing credit allocations to businesses with poor environmental performance, the credit policy tied to environmental performance seeks to allocate bank credit while causing a shock to the cost of external financing. (Hong et al, 2021;Lee and Lee, 2022;Li et al, 2022;Wei Su et al, 2022;and Zhao et al, 2023). Contractual terms like the need for collateral may be affected by environmental performance.…”

Section: Introductionmentioning

confidence: 99%

Examining the Association between Environmental Performance and the Company’s Ability to Access Bank Credit: Evidence from Egyptian Companies

خليل,

عسران

2023

مجلة البحوث الإدارية

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With Egypt's economy serving as a model for developing countries, this study investigates the relationship between environmental performance and a company's ability to obtain bank loans. For the period from 2013 -2022, an empirical analysis is applied to the Egyptian listed companies. The importance of this issue is consistent with Egypt's vision 2020-2030. Go green initiative started in Egypt in 2022.Therefore, a compelling area for studying will be how environmental performance influences a company's ability to obtain bank loans in developing nations, given the lack of consensus evident in earlier studies about this relationship in terms of being linear or non-linear and the characteristics of countries, whether developed or developing.The weighted least squares model was used as a base for the investigation. The statistical analyses' findings revealed that environmental performance positively affects the company's access to bank credit, and this is theoretically consistent with stakeholder theory and signaling theory. The positive correlation between environmental performance and bank credit demonstrates how the Egyptian listed companies value their contribution to environmental protection and use banks that reward environmentally friendly businesses to get the financing they require. It also shows the extent of the effort made by Egypt in general and the Central Bank of Egypt in particular in seeking to implement the green credit policy, which comes within Egypt's strategic plan to transform towards a green economy in the Middle East.

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“…Green credit allows financial institutions to consider pollution management and environmental protection as significant requirements for credit acceptance [ 14 ]. Implementing green credit can help financial institutions improve their competitiveness, reduce their credit risk, and improve their long-term financial performance [ [15] , [16] , [17] ], but understanding environmental pollution information about enterprises or projects incurs additional review and supervision costs [ 18 ]. Green credit policies can dramatically boost the financing availability of green firms while also suppressing the investment and financing of heavily polluting enterprises.…”

Section: Introductionmentioning

confidence: 99%

Research on the evolution game of low-carbon operations in cold chain logistics considering environmental regulations and green credit

Wu,

Zhu,

Jiang

2024

Heliyon

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Green credit policy and investment-cash flow sensitivity: Evidence from a quasi-natural experiment

Cited by 21 publications

References 21 publications

Research on the impact of ESG performance on carbon emissions from the perspective of green credit

Research on the impact of ESG performance on carbon emissions from the perspective of green credit

Examining the Association between Environmental Performance and the Company’s Ability to Access Bank Credit: Evidence from Egyptian Companies

Research on the evolution game of low-carbon operations in cold chain logistics considering environmental regulations and green credit

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