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Green Credit and Company R&D Level: Empirical Research Based on Threshold Effects

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  • Huiying Chen

    (School of Management, China University of Mining & Technology, Xuzhou 221116, China)

  • Chuanzhe Liu

    (School of Management, China University of Mining & Technology, Xuzhou 221116, China)

  • Fangming Xie

    (School of Management, China University of Mining & Technology, Xuzhou 221116, China)

  • Tong Zhang

    (School of Management, China University of Mining & Technology, Xuzhou 221116, China)

  • Fangyuan Guan

    (School of Management, China University of Mining & Technology, Xuzhou 221116, China)

Abstract

Commercial banks follow sustainable development strategies to provide green credit for companies. As the main target for banks to issue green credit, environmental protection companies carry out research and development (R&D) activities for the purposes of protecting the environment and sustainable development. Therefore, the R&D level of environmental protection companies is a measure of whether the green credit policy meets its purpose. Therefore, it is particularly important to study green credit from a company perspective. This paper used panel data from 24 environmental protection companies listed on the Shanghai and Shenzhen Stock Exchange from 2012 to 2017 and adopted a threshold model to examine the relationship between green credit and company R&D level. The results indicate that there is a positive but nonlinear relationship between green credit and company R&D levels. The empirical analysis through the threshold model shows that a threshold effect remains on the relationship and this threshold effect is caused by the levels of firm size, bank lending, and government subsidies.

Suggested Citation

  • Huiying Chen & Chuanzhe Liu & Fangming Xie & Tong Zhang & Fangyuan Guan, 2019. "Green Credit and Company R&D Level: Empirical Research Based on Threshold Effects," Sustainability, MDPI, vol. 11(7), pages 1-14, March.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:7:p:1918-:d:218554
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    Cited by:

    1. Yuming Zhang & Chao Xing & David Tripe, 2020. "Redistribution of China’s Green Credit Policy among Environment-Friendly Manufacturing Firms of Various Sizes: Do Banks Value Small and Medium-Sized Enterprises?," IJERPH, MDPI, vol. 18(1), pages 1-28, December.
    2. Shi, Jinyan & Yu, Conghui & Li, Yanxi & Wang, Tianhe, 2022. "Does green financial policy affect debt-financing cost of heavy-polluting enterprises? An empirical evidence based on Chinese pilot zones for green finance reform and innovations," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    3. Xu, Aiting & Zhu, Yuhan & Wang, Wenpu, 2023. "Micro green technology innovation effects of green finance pilot policy—From the perspectives of action points and green value," Journal of Business Research, Elsevier, vol. 159(C).
    4. Zhao, Liange & Wang, Dongmei & Wang, Xueyuan & Zhang, Zhijian, 2023. "Impact of green finance on total factor productivity of heavily polluting enterprises: Evidence from green finance reform and innovation pilot zone," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 765-785.
    5. Haoyang Tan & Qiang Zhang, 2021. "Application of Blockchain Hierarchical Model in the Realm of Rural Green Credit Investigation," Sustainability, MDPI, vol. 13(3), pages 1-9, January.

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