Research on corporate environmental investment behaviour driven by green credit policies

Haibo Jia, Rongnan Li, Yuanbo Guo and Zi Zhao

International Review of Financial Analysis, 2025, vol. 97, issue C

Abstract: Utilizing data from non-financial listed companies in Shanghai and Shenzhen A-share markets spanning from 2008 to 2021, and with a particular emphasis on the issuance of the Green Credit Guidelines in 2012, this study delves into the actual ramifications of the green credit policy on enterprises' environmental protection investments through the application of the difference-in-differences method. The research reveals that the green credit policy notably enhances enterprises' environmental investment activities. However, to a certain extent, political connections undermine the efficacy of this policy's implementation.Furthermore, our findings indicate that the positive influence of the green credit policy on environmental investments is more pronounced in state-owned enterprises. Simultaneously, in private enterprises, political connections exert a more substantial dampening effect on the implementation of green credit. Notably, in regions that are more market-oriented, political connections significantly weaken the impact of the green credit policy, thereby discouraging green investments.

Keywords: Green credit; Political connections; Corporate environmental investment (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:97:y:2025:i:c:s1057521924007324

DOI: 10.1016/j.irfa.2024.103800

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