Green credit policy, property rights and debt financing: Quasi-natural experimental evidence from China

Xinghe Liu, Enxian Wang and Danting Cai

Finance Research Letters, 2019, vol. 29, issue C, 129-135

Abstract: Our paper uses the promulgation of the "Green Credit Guidelines" policy in China as a quasi-natural experiment. Based on a difference-in-differences (DID) model, the results show that the debt financing capacity of heavily polluting enterprises has dropped significantly, and the negative net effect of debt financing is more pronounced in state-owned enterprises and enterprises in regions with weak financial ecosystems. The research results show that the green credit policy system plays a guiding role in the allocation of credit resources.

Keywords: Green credit policy; Property rights; Debt financing; Financial ecological environment; Heavily polluting enterprises (search for similar items in EconPapers)
JEL-codes: E51 G32 O16 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (130)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:29:y:2019:i:c:p:129-135

DOI: 10.1016/j.frl.2019.03.014

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