Green Credit Policy and Enterprise Green M&As: An Empirical Test from China

Ying Sun () and Li Liu
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Ying Sun: School of Management, Ocean University of China, Qingdao 266100, China
Li Liu: School of Management, Ocean University of China, Qingdao 266100, China

Sustainability, 2022, vol. 14, issue 23, 1-22

Abstract: Green credit is an important financial tool to coordinate the relationship between economic development and environmental protection. The Green Credit Guidelines (GCGs) issued in 2012 comprise the first formal, dedicated green credit policy. To test the effectiveness of the GCGs in green governance, in this study, we use the differences-in-differences (DID) method to test the impact of the implementation of the GCGs on enterprise green mergers and acquisitions (M&As) and further examine the performance of green M&As. The results show that the implementation of the GCGs have significantly promoted the green M&A activities of heavily polluting enterprises, and the promotion effect is more significant in enterprises with poor green innovation ability and enterprises with low financial marketization levels. Further research reveals that green M&As can improve the green innovation performance of enterprises. From the perspective of green M&As, in this paper, we expand the research on the effect of green credit policy, providing a decision-making reference for the promotion and improvement of subsequent green credit policy.

Keywords: green credit policy; green M&As; green innovation; differences-in-differences method (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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