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Green credit and corporate ESG performance: Evidence from China

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  • Gao, Wei
  • Liu, Zebin

Abstract

Using the data of Chinese a-share non-financial listed companies from 2010 to 2020, this paper conducts a natural experiment based on the implementation of the circular on the issuance of green credit guidelines, DID model was used to explore the impact of green credit on ESG performance and its mechanism. The results show that the implementation of green credit policy can significantly improve the ESG performance of enterprises. After parallel trend test and PSM-DID test, the results are still valid. Further analysis shows that green credit can improve ESG performance by promoting Enterprise Green technology innovation.

Suggested Citation

  • Gao, Wei & Liu, Zebin, 2023. "Green credit and corporate ESG performance: Evidence from China," Finance Research Letters, Elsevier, vol. 55(PB).
    • Handle: RePEc:eee:finlet:v:55:y:2023:i:pb:s1544612323003124
    DOI: 10.1016/j.frl.2023.103940
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    References listed on IDEAS

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    1. Alexandre Sanches Garcia & Renato J. Orsato, 2020. "Testing the institutional difference hypothesis: A study about environmental, social, governance, and financial performance," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3261-3272, December.
    2. Li, Shibin & Wang, Qian, 2023. "Green finance policy and digital transformation of heavily polluting firms: Evidence from China," Finance Research Letters, Elsevier, vol. 55(PA).
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    Cited by:

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    15. Liyuan Meng & Yuchen Zhang, 2023. "Impact of Tax Administration on ESG Performance—A Quasi-Natural Experiment Based on China’s Golden Tax Project III," Sustainability, MDPI, vol. 15(14), pages 1-23, July.
    16. Han, Dongmei & Teng, Fangfei & Jia, Ruoya, 2023. "Achieving the goal of net-zero requires both resource efficiency and efficient business management," Resources Policy, Elsevier, vol. 86(PA).
    17. Shi, Xianwang & Ma, Jianteng & Jiang, Anxuan & Wei, Shuang & Yue, Leilei, 2023. "Green bonds: Green investments or greenwashing?," International Review of Financial Analysis, Elsevier, vol. 90(C).
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