Green credit policy and firm performance: What we learn from China

Shouyu Yao, Yuying Pan, Ahmet Sensoy, Gazi Uddin and Feiyang Cheng

Energy Economics, 2021, vol. 101, issue C

Abstract: 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.

Keywords: Green credit policy; Firm performance; Financial constraints; Investment; China (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (133)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:101:y:2021:i:c:s014098832100311x

DOI: 10.1016/j.eneco.2021.105415

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