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

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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.

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Our data are available upon request.

Notes

  1. According to official statistics, about 75% of the city commercial banks’ largest shareholders are local governments or state-owned enterprises (Zhu et al., 2020).

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Acknowledgements

We acknowledge the helpful comments from editors and anonymous reviewers. This research was conducted within the framework of the projects “Major Humanities and Social Sciences Research Project in Universities in Zhejiang Province” (2023QN081) and “The Philosophy and Social Science Planning Project in Zhejiang Province” (22NDJC026Z) separately funded by Zhejiang Provincial Department of Education and Zhejiang Federation of Humanities and Social Sciences. The institutions providing financial supports are not involved in research design, data collection, analysis and interpretation, and the writing of paper.

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Authors and Affiliations

  1. School of Accounting, Zhejiang University of Finance & Economics, Hangzhou, China

    Qiao-xin Xie & Jing-er Ge

  2. School of Economics and Law, Zhejiang Gongshang University Hangzhou College of Commerce, Hangzhou, China

    Yu Zhang

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  1. Qiao-xin Xie
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  2. Yu Zhang
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Correspondence to Yu Zhang.

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Xie, Qx., Zhang, Y. & Ge, Je. Enterprise economic influence and implementation deviation of green credit policy: evidence from China. Econ Polit 40, 81–111 (2023). https://doi.org/10.1007/s40888-023-00295-x

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