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

Dongyang Zhang and Qunxi Kong

Pacific-Basin Finance Journal, 2022, vol. 73, issue C

Abstract: We investigate the impact of green credit policy on the R&D investment of “two high and one leftover” enterprises using China's 2012 “Green Credit Guidelines” and the difference-in-difference method. The first key finding is that the implementation of green credit policy is detrimental to the R&D investment of “two high and one leftover” enterprises, as verified by relevant robustness tests. Second, the heterogeneity analysis reveals that the impact of green credit policy on enterprise R&D investment is shaped by market environment, geography, and firm type. Third, economic policy uncertainty influences the disincentivizing effect of green credit policy on R&D investment.

Keywords: Green credit; R&D investment; Economic policy uncertainty; "two high and one leftover" enterprises (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (21)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:73:y:2022:i:c:s0927538x22000464

DOI: 10.1016/j.pacfin.2022.101751

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