IDEAS home Printed from https://ideas.repec.org/a/spr/epolit/v40y2023i1d10.1007_s40888-023-00295-x.html
   My bibliography  Save this article

Enterprise economic influence and implementation deviation of green credit policy: evidence from China

Author

Listed:
  • Qiao-xin Xie

    (Zhejiang University of Finance & Economics)

  • Yu Zhang

    (Zhejiang Gongshang University Hangzhou College of Commerce)

  • Jing-er Ge

    (Zhejiang University of Finance & Economics)

Abstract

Based on the empirical data of Chinese A-share listed companies from 2008 to 2018, this paper analyzes the impact of green credit policy on debt financing of heavily polluting enterprises and the implementation deviation of green credit policy among enterprises with different economic influences. The results show that the implementation of green credit policy has significantly inhibited the debt financing of heavily polluting enterprises. In the context of government performance appraisal based on economic growth criteria, the restraining effect of green credit policy on heavily polluting enterprises with low economic influence is stronger than that of enterprises with high economic influence. That is, the implementation deviation of green credit policy exists among enterprises with different economic influences. Further research shows that the implementation deviation of green credit policy exists in both state-owned enterprises and non-state-owned enterprises, and the central environmental protection inspection has significantly reduced the implementation deviation of green credit policy. The article explains that in transition economies represented by China, the emphasis on economic growth in the performance evaluation of officials and the high level of government intervention in economic activities will reduce the effectiveness of green credit policy and damage the fair competition environment of the market.

Suggested Citation

  • Qiao-xin Xie & Yu Zhang & Jing-er Ge, 2023. "Enterprise economic influence and implementation deviation of green credit policy: evidence from China," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 40(1), pages 81-111, April.
    • Handle: RePEc:spr:epolit:v:40:y:2023:i:1:d:10.1007_s40888-023-00295-x
    DOI: 10.1007/s40888-023-00295-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s40888-023-00295-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s40888-023-00295-x?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. Raj Chetty & Adam Looney & Kory Kroft, 2009. "Salience and Taxation: Theory and Evidence," American Economic Review, American Economic Association, vol. 99(4), pages 1145-1177, September.
    2. Sean Cleary, 1999. "The Relationship between Firm Investment and Financial Status," Journal of Finance, American Finance Association, vol. 54(2), pages 673-692, April.
    3. Tang, Pengcheng & Jiang, Qisheng & Mi, Lili, 2021. "One-vote veto: The threshold effect of environmental pollution in China's economic promotion tournament," Ecological Economics, Elsevier, vol. 185(C).
    4. Cui, Xin & Wang, Panpan & Sensoy, Ahmet & Nguyen, Duc Khuong & Pan, Yuying, 2022. "Green Credit Policy and Corporate Productivity: Evidence from a Quasi-natural Experiment in China," Technological Forecasting and Social Change, Elsevier, vol. 177(C).
    5. Thorsten Beck & Ross Levine & Alexey Levkov, 2010. "Big Bad Banks? The Winners and Losers from Bank Deregulation in the United States," Journal of Finance, American Finance Association, vol. 65(5), pages 1637-1667, October.
    6. Yao, Shouyu & Pan, Yuying & Sensoy, Ahmet & Uddin, Gazi Salah & Cheng, Feiyang, 2021. "Green credit policy and firm performance: What we learn from China," Energy Economics, Elsevier, vol. 101(C).
    7. Wen, Huwei & Lee, Chien-Chiang & Zhou, Fengxiu, 2021. "Green credit policy, credit allocation efficiency and upgrade of energy-intensive enterprises," Energy Economics, Elsevier, vol. 94(C).
    8. Li, Hongbin & Zhou, Li-An, 2005. "Political turnover and economic performance: the incentive role of personnel control in China," Journal of Public Economics, Elsevier, vol. 89(9-10), pages 1743-1762, September.
    9. Wang, Xinyue & Wang, Qing, 2021. "Research on the impact of green finance on the upgrading of China's regional industrial structure from the perspective of sustainable development," Resources Policy, Elsevier, vol. 74(C).
    10. Liu, Xinghe & Wang, Enxian & Cai, Danting, 2019. "Green credit policy, property rights and debt financing: Quasi-natural experimental evidence from China," Finance Research Letters, Elsevier, vol. 29(C), pages 129-135.
    11. Chen, Yvonne Jie & Li, Pei & Lu, Yi, 2018. "Career concerns and multitasking local bureaucrats: Evidence of a target-based performance evaluation system in China," Journal of Development Economics, Elsevier, vol. 133(C), pages 84-101.
    12. Xing, Chao & Zhang, Yuming & Tripe, David, 2021. "Green credit policy and corporate access to bank loans in China: The role of environmental disclosure and green innovation," International Review of Financial Analysis, Elsevier, vol. 77(C).
    13. Wang, Miao & Feng, Chao, 2021. "The win-win ability of environmental protection and economic development during China's transition," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    14. Wang, Jiayi & Lei, Ping, 2021. "The tournament of Chinese environmental protection: Strong or weak competition?," Ecological Economics, Elsevier, vol. 181(C).
    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. Chaoyu Cao & Qibo Chen & Lili Zhu, 2024. "Corporate Greenwashing Unexpectedly Caused by the Green Credit Policy: A Comparison between Environmental Sustainability Information Disclosure and Actual Environmental Protection Investment from Chin," Sustainability, MDPI, vol. 16(17), pages 1-14, August.

    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. Zheng, Shuxia & Zhang, Xiaoming & Wang, Hu, 2023. "Green credit policy and the stock price synchronicity of heavily polluting enterprises," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 251-264.
    2. Qianyi Du & Haoran Pan & Shuang Liang & Xiaoxue Liu, 2023. "Can Green Credit Policies Accelerate the Realization of the Dual Carbon Goal in China? Examination Based on an Endogenous Financial CGE Model," IJERPH, MDPI, vol. 20(5), pages 1-26, March.
    3. Ma, Yanbai & Lu, Ling & Cui, Jingbo & Shi, Xunpeng, 2024. "Can green credit policy stimulate firms’ green investments?," International Review of Economics & Finance, Elsevier, vol. 91(C), pages 123-137.
    4. Zhang, Weike & Luo, Qian & Liu, Shiyuan, 2022. "Is government regulation a push for corporate environmental performance? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 105-121.
    5. Huang, Hongyun & Mbanyele, William & Wang, Fengrong & Zhang, Chenxi & Zhao, Xin, 2023. "Nudging corporate environmental responsibility through green finance? Quasi-natural experimental evidence from China," Journal of Business Research, Elsevier, vol. 167(C).
    6. Wang, Xiaoyin & Gao, Cuiyun, 2024. "Does green finance policy help to improve carbon reduction welfare performance? Evidence from China," Energy Economics, Elsevier, vol. 132(C).
    7. Jianxin Wu & Ziwei Feng & Chunbo Ma, 2024. "Promotion Incentives and Environmental Regulation: Evidence from China’s Environmental One-Vote Veto Evaluation Regime," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(1), pages 257-286, January.
    8. Yu Liu & Huiping Ding & Biao Sun, 2022. "Does Green Credit Policy Promote or Inhibit Firms’ Green Innovation in China? Moderating Effect of Environmental Information Disclosure," Sustainability, MDPI, vol. 15(1), pages 1-17, December.
    9. Wang, Yufeng, 2023. "Can the green credit policy reduce carbon emission intensity of “high-polluting and high-energy-consuming” enterprises? Insight from a quasi-natural experiment in China," Global Finance Journal, Elsevier, vol. 58(C).
    10. Xiaoting Ling & Lijuan Yan & Deming Dai, 2022. "Green Credit Policy and Investment Decisions: Evidence from China," Sustainability, MDPI, vol. 14(12), pages 1-22, June.
    11. Yan, Xiaolei & He, Taiyi & Qian, Pengcheng & Liu, Zhongwen, 2024. "Does the construction of Pilot Free Trade Zones promote the development of green economy? - A quasi-natural experiment evidence from China," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 208-224.
    12. Zhang, Shengling & Wu, Zihao & He, Yinan & Hao, Yu, 2022. "How does the green credit policy affect the technological innovation of enterprises? Evidence from China," Energy Economics, Elsevier, vol. 113(C).
    13. Yi Chen & Zhongwen Xu & Xuehao Wang & Yining Yang, 2023. "How does green credit policy improve corporate social responsibility in China? An analysis based on carbon‐intensive listed firms," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(2), pages 889-904, March.
    14. Ying Sun & Li Liu, 2022. "Green Credit Policy and Enterprise Green M&As: An Empirical Test from China," Sustainability, MDPI, vol. 14(23), pages 1-22, November.
    15. Guo, Shu & Zhang, ZhongXiang, 2023. "Green credit policy and total factor productivity: Evidence from Chinese listed companies," Energy Economics, Elsevier, vol. 128(C).
    16. Zhao, Xing & Li, Xiangqian & He, Zhuoyi & Shi, Ruoying, 2024. "The relationship between the acquisition of corporate credit and the gender of executives: Evidence from developing countries," Finance Research Letters, Elsevier, vol. 62(PA).
    17. Wang, Mei Ling, 2023. "Effects of the green finance policy on the green innovation efficiency of the manufacturing industry: A difference-in-difference model," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    18. Lei, Ni & Miao, Qin & Yao, Xin, 2023. "Does the implementation of green credit policy improve the ESG performance of enterprises? Evidence from a quasi-natural experiment in China," Economic Modelling, Elsevier, vol. 127(C).
    19. Zhou, Bihua & Huang, Yun & Zhao, Yihang, 2024. "Research on the incentive effect of the policy combination of carbon-reduction pilot cities," International Review of Economics & Finance, Elsevier, vol. 91(C), pages 456-475.
    20. Tan, Jing & Liu, Tianyi & Xu, Hao, 2024. "The environmental and economic consequences of environmental centralization: Evidence from China's environmental vertical management reform," China Economic Review, Elsevier, vol. 84(C).

    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:spr:epolit:v:40:y:2023:i:1:d:10.1007_s40888-023-00295-x. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.