Influence of Green Credit Policy on Corporate Risk-Taking: The Mediating Effect of Debt Maturity Mismatch and the Moderating Effect of Executive Compensation

Zhongshuai Wang, Baocheng Bian () and Jun Wang
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Zhongshuai Wang: School of Economics and Management, Qingdao University of Science and Technology, Qingdao 266061, China
Baocheng Bian: School of Economics, Ocean University of China, Qingdao 266011, China
Jun Wang: School of Management Engineering, Qingdao University of Technology, Qingdao 266520, China

Sustainability, 2025, vol. 17, issue 7, 1-30

Abstract: Risk-taking is a critical driver of sustainable development and financial performance for firms, especially under environmental degradation constraints. Despite the increasing implementation of green credit policies, their impact on corporate risk-taking remains underexplored in the existing literature. This study investigates the effects and underlying mechanisms of green credit policies on risk-taking behaviors among Chinese listed companies from 2009 to 2019. Utilizing econometric methodologies, including Difference-in-Differences, mediation analysis, and moderation analysis, the findings reveal that green credit policies significantly enhance the risk-taking activities of polluting enterprises. These results are robust across various sensitivity tests. Additionally, the relationship between green credit policies and corporate risk-taking is mediated by debt maturity mismatch and moderated by ESG and executive compensation. Subgroup analyses indicate that large and state-owned polluting enterprises experience greater increases in risk-taking compared to their small, medium-sized, and private counterparts. Furthermore, executive remuneration notably amplifies risk-taking in private firms. This research provides essential micro-level insights to optimize the effectiveness of green credit policies in promoting corporate risk-taking and advancing sustainable development.

Keywords: green credit policy; corporate risk-taking; debt maturity mismatch; executive compensation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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