IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v52y2023ics1544612322007280.html
   My bibliography  Save this article

The impact of the level of green finance development on corporate debt financing capacity

Author

Listed:
  • He, Yu
  • Liu, Ruizhi

Abstract

The study examines the impact of the level of green finance development on the debt financing capacity of heavy polluters and green enterprises in China. Using the entropy value method to calculate the level of green finance development at the region level from 2007 to 2020, we find that the increase in the level of green financial development helps to enhance the debt financing ability of green enterprises, while suppressing the debt financing ability of heavy polluting enterprises, and promotes the transformation of heavy polluting enterprises from the perspective of enterprise debt financing.

Suggested Citation

  • He, Yu & Liu, Ruizhi, 2023. "The impact of the level of green finance development on corporate debt financing capacity," Finance Research Letters, Elsevier, vol. 52(C).
    • Handle: RePEc:eee:finlet:v:52:y:2023:i:c:s1544612322007280
    DOI: 10.1016/j.frl.2022.103552
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612322007280
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2022.103552?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Flammer, Caroline, 2021. "Corporate green bonds," Journal of Financial Economics, Elsevier, vol. 142(2), pages 499-516.
    2. Yue Pan & Qiuping Chen & Pengdong Zhang, 2020. "Does policy uncertainty affect corporate environmental information disclosure: evidence from China," Sustainability Accounting, Management and Policy Journal, Emerald Group Publishing Limited, vol. 11(5), pages 903-931, June.
    3. Lingyun He & Chen Wu & Xiaolei Yang & Jiao Liu, 2019. "Corporate social responsibility, green credit, and corporate performance: an empirical analysis based on the mining, power, and steel industries of China," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 95(1), pages 73-89, January.
    4. Yongming Huang & Lian Xue & Zeeshan Khan, 2021. "What abates carbon emissions in China: Examining the impact of renewable energy and green investment," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(5), pages 823-834, September.
    5. Yue Pan & Qiuping Chen & Pengdong Zhang, 2020. "Does policy uncertainty affect corporate environmental information disclosure: evidence from China," Sustainability Accounting, Management and Policy Journal, Emerald Group Publishing Limited, vol. 11(5), pages 903-931, June.
    6. Markandya, A. & Antimiani, A. & Costantini, V. & Martini, C. & Palma, A. & Tommasino, M.C., 2015. "Analyzing Trade-offs in International Climate Policy Options: The Case of the Green Climate Fund," World Development, Elsevier, vol. 74(C), pages 93-107.
    7. Pasquale Marcello Falcone, 2020. "Environmental regulation and green investments: the role of green finance," International Journal of Green Economics, Inderscience Enterprises Ltd, vol. 14(2), pages 159-173.
    8. Merk, Christine & Rehdanz, Katrin & Schröder, Carsten, 2019. "How consumers trade off supply security and green electricity: Evidence from Germany and Great Britain," Energy Economics, Elsevier, vol. 84(S1).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Guo, Shu & Zhang, ZhongXiang, 2023. "Green credit policy and total factor productivity: Evidence from Chinese listed companies," Energy Economics, Elsevier, vol. 128(C).
    2. Chen, Hanfang & Wang, Zhongjie & Chen, Zhangchi, 2024. "Accounting integrity, borrowing capacity and corporate R&D input: Evidence from China," Finance Research Letters, Elsevier, vol. 62(PB).
    3. Xiwen Yin & Dingqing Wang & Jingjing Lu & Lei Liu, 2023. "Does green credit policy promote corporate green innovation? Evidence from China," Economic Change and Restructuring, Springer, vol. 56(5), pages 3187-3215, October.
    4. Lee, Chien-Chiang & Wang, Fuhao & Lou, Runchi & Wang, Keying, 2023. "How does green finance drive the decarbonization of the economy? Empirical evidence from China," Renewable Energy, Elsevier, vol. 204(C), pages 671-684.
    5. Han, Xu & Wang, Ying & Yu, Wanlin & Xia, Xianli, 2023. "Coupling and coordination between green finance and agricultural green development: Evidence from China," Finance Research Letters, Elsevier, vol. 58(PA).
    6. Muhammad Naveed Jamil & Abdul Rasheed, 2024. "Dynamic Effect of External Finance in Achieving Eco-efficiency and Sustainable Development Goals," Journal of Economic Impact, Science Impact Publishers, vol. 6(2), pages 115-124.
    7. Xu, Jingrong & Tian, Jie & Liu, Yongjian, 2024. "The study of coevolution relationship among coastal marine economy, innovation, and ecology based on Chinese complex systems," Finance Research Letters, Elsevier, vol. 65(C).
    8. Chu, Mingbin & Li, Bingwei & Gu, Weiyu & Dai, Xiajing, 2024. "Role of green finance in enhancing the sustainability in the mining sector in Asia," Resources Policy, Elsevier, vol. 88(C).
    9. Alora, Aswin & Sahoo, Poonam & Sasidharan, Aghila, 2024. "Central bank digital currency adoption challenges- The case of an emerging nation," Finance Research Letters, Elsevier, vol. 59(C).
    10. Ke Xu & Peiya Zhao, 2023. "Does Green Finance Promote Green Total Factor Productivity? Empirical Evidence from China," Sustainability, MDPI, vol. 15(14), pages 1-26, July.
    11. Chen, Jingquan & Ma, Wanying & Kchouri, Bilal & Ribeiro-Navarrete, Samuel, 2024. "Resource rich yet debt ridden: The role of natural resources and debt servicing in sustainable economic growth," Resources Policy, Elsevier, vol. 89(C).
    12. Sadiq, Muhammad & Paramaiah, Ch & joseph, Robinson & Dong, Ziguang & Nawaz, Muhammad Atif & Shukurullaevich, Nizomjon Khajimuratov, 2024. "Role of fintech, green finance, and natural resource rents in sustainable climate change in China. Mediating role of environmental regulations and government interventions in the pre-post COVID eras," Resources Policy, Elsevier, vol. 88(C).
    13. Xu, Jie & Chen, Fu & Zhang, Weiwei & Liu, Yiting & Li, Tingting, 2023. "Analysis of the carbon emission reduction effect of Fintech and the transmission channel of green finance," Finance Research Letters, Elsevier, vol. 56(C).
    14. Fangbin Qian & Yuanjie Pu & Yunfeng Shang, 2023. "Financing preferences and practices for developing sustainable exhibitions in Chinese companies," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-8, December.
    15. Hanzhi Zhang & Jingfeng Zhang & Chih-Hung Pai, 2024. "Promoting carbon neutrality and green growth through cultural industry financing," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-8, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Fanyi & Ma, Wanying & Mirza, Nawazish & Altuntaş, Mehmet, 2023. "Green financing, financial uncertainty, geopolitical risk, and oil prices volatility," Resources Policy, Elsevier, vol. 83(C).
    2. Yoshihiro Zenno & Kentaka Aruga, 2022. "Institutional Investors’ Willingness to Pay for Green Bonds: A Case for Shanghai," JRFM, MDPI, vol. 15(11), pages 1-16, November.
    3. Zhang, Dongyang, 2023. "Does green finance really inhibit extreme hypocritical ESG risk? A greenwashing perspective exploration," Energy Economics, Elsevier, vol. 121(C).
    4. Rannou, Yves & Boutabba, Mohamed Amine & Barneto, Pascal, 2021. "Are Green Bond and Carbon Markets in Europe complements or substitutes? Insights from the activity of power firms," Energy Economics, Elsevier, vol. 104(C).
    5. Linnenluecke, Martina K. & Smith, Tom & McKnight, Brent, 2016. "Environmental finance: A research agenda for interdisciplinary finance research," Economic Modelling, Elsevier, vol. 59(C), pages 124-130.
    6. Heena Thanki & Sweety Shah & Harishchandra Singh Rathod & Ankit D. Oza & Dumitru Doru Burduhos-Nergis, 2022. "I Am Ready to Invest in Socially Responsible Investments (SRI) Options Only If the Returns Are Not Compromised: Individual Investors’ Intentions toward SRI," Sustainability, MDPI, vol. 14(18), pages 1-17, September.
    7. de Miguel, Carlos & Filippini, Massimo & Labandeira, Xavier & Labeaga, José M. & Löschel, Andreas, 2019. "Low-carbon Transitions: Economics and Policy," Energy Economics, Elsevier, vol. 84(S1).
    8. Wang, Chih-Wei & Wu, Yu-Ching & Hsieh, Hsin-Yi & Huang, Po-Hsiang & Lin, Meng-Chieh, 2022. "Does green bond issuance have an impact on climate risk concerns?," Energy Economics, Elsevier, vol. 111(C).
    9. Antimiani, Alessandro & Costantini, Valeria & Kuik, Onno & Paglialunga, Elena, 2016. "Mitigation of adverse effects on competitiveness and leakage of unilateral EU climate policy: An assessment of policy instruments," Ecological Economics, Elsevier, vol. 128(C), pages 246-259.
    10. Ren, Xiaohang & Li, Yiying & yan, Cheng & Wen, Fenghua & Lu, Zudi, 2022. "The interrelationship between the carbon market and the green bonds market: Evidence from wavelet quantile-on-quantile method," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    11. Udemba, Edmund Ntom & Tosun, Merve, 2022. "Moderating effect of institutional policies on energy and technology towards a better environment quality: A two dimensional approach to China's sustainable development," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    12. Abakah, Emmanuel Joel Aikins & Tiwari, Aviral Kumar & Adekoya, Oluwasegun B. & Oteng-Abayie, Eric Fosu, 2023. "An analysis of the time-varying causality and dynamic correlation between green bonds and US gas prices," Technological Forecasting and Social Change, Elsevier, vol. 186(PA).
    13. Huo, Xiaolin & Jiang, Dayan & Qiu, Zhigang & Yang, Sijie, 2022. "The impacts of dual carbon goals on asset prices in China," Journal of Asian Economics, Elsevier, vol. 83(C).
    14. Cai, Yurong & Zhou, Pengfei & Zhang, Yiting & Shen, Yang, 2023. "Natural resources extraction and sustainable environment: COP26 perspective for China," Resources Policy, Elsevier, vol. 82(C).
    15. Xu, Jie & Chen, Fu & Zhang, Weiwei & Liu, Yiting & Li, Tingting, 2023. "Analysis of the carbon emission reduction effect of Fintech and the transmission channel of green finance," Finance Research Letters, Elsevier, vol. 56(C).
    16. Altavilla, Carlo & Boucinha, Miguel & Pagano, Marco & Polo, Andrea, 2023. "Climate Risk, Bank Lending and Monetary Policy," CEPR Discussion Papers 18541, C.E.P.R. Discussion Papers.
    17. Gillan, Stuart L. & Koch, Andrew & Starks, Laura T., 2021. "Firms and social responsibility: A review of ESG and CSR research in corporate finance," Journal of Corporate Finance, Elsevier, vol. 66(C).
    18. Yao An & Ning Liu & Lin Zhang & Huanhuan Zheng, 2022. "Adapting to climate risks through cross-border investments: industrial vulnerability and smart city resilience," Climatic Change, Springer, vol. 174(1), pages 1-29, September.
    19. Dong, Xiyong & Xiong, Youlin & Nie, Siyue & Yoon, Seong-Min, 2023. "Can bonds hedge stock market risks? Green bonds vs conventional bonds," Finance Research Letters, Elsevier, vol. 52(C).
    20. Breckenfelder, Johannes & Maćkowiak, Bartosz & Marqués-Ibáñez, David & Olovsson, Conny & Popov, Alexander & Porcellacchia, Davide & Schepens, Glenn, 2023. "The climate and the economy," Working Paper Series 2793, European Central Bank.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:52:y:2023:i:c:s1544612322007280. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.