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Do Banks Value Green Management in China? The Perspective of the Green Credit Policy

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  • Xing, Chao
  • Zhang, Yuming
  • Wang, Yuan

Abstract

This study explores the relationship between green management and companies’ access to bank loans in the context of China's green credit policy. Using a sample of Chinese listed companies from 2012 to 2019, it shows that green management can significantly improve firms’ loan size. Moreover, corporate environmental disclosure and environmental pressure from local governments positively moderate the relationship between green management and bank loan acquisition. These results contribute to the literature on green credit policy, green management and corporate finance and provide a reference for policy makers.

Suggested Citation

  • Xing, Chao & Zhang, Yuming & Wang, Yuan, 2020. "Do Banks Value Green Management in China? The Perspective of the Green Credit Policy," Finance Research Letters, Elsevier, vol. 35(C).
    • Handle: RePEc:eee:finlet:v:35:y:2020:i:c:s1544612319314771
    DOI: 10.1016/j.frl.2020.101601
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Green management; Bank loans; Green credit policy; Environmental disclosure; Government pressure;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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