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Credit policy, uncertainty, and firm R&D investment: A quasi-natural experiment based on the Green Credit Guidelines

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  • Zhang, Dongyang
  • Kong, Qunxi

Abstract

We investigate the impact of green credit policy on the R&D investment of “two high and one leftover” enterprises using China's 2012 “Green Credit Guidelines” and the difference-in-difference method. The first key finding is that the implementation of green credit policy is detrimental to the R&D investment of “two high and one leftover” enterprises, as verified by relevant robustness tests. Second, the heterogeneity analysis reveals that the impact of green credit policy on enterprise R&D investment is shaped by market environment, geography, and firm type. Third, economic policy uncertainty influences the disincentivizing effect of green credit policy on R&D investment.

Suggested Citation

  • Zhang, Dongyang & Kong, Qunxi, 2022. "Credit policy, uncertainty, and firm R&D investment: A quasi-natural experiment based on the Green Credit Guidelines," Pacific-Basin Finance Journal, Elsevier, vol. 73(C).
    • Handle: RePEc:eee:pacfin:v:73:y:2022:i:c:s0927538x22000464
    DOI: 10.1016/j.pacfin.2022.101751
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