Do bank incentives matter? Evidence from the impact of green finance on corporate carbon neutrality performance

Hao Wu and Yunling Song

Finance Research Letters, 2025, vol. 71, issue C

Abstract: Bank incentives are pivotal to enterprises’ low-carbon transitions. Utilizing the 2021 China green finance evaluation as an exogenous shock to bank incentives, we show that increasing such incentives can significantly enhance the carbon neutrality performance of heavily polluting enterprises. Additionally, factors based on financing perspective and stakeholders’ attention moderate that relationship. The impact of bank incentives solely extends to the environmental dimension of ESG. Our results provide insights and policy implications for stakeholders and policymakers in promoting the impact of green finance.

Keywords: Green finance evaluation; Green finance; Bank incentives; Carbon neutrality performance (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:71:y:2025:i:c:s1544612324014880

DOI: 10.1016/j.frl.2024.106459

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