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The impact of green credit on firms' green investment efficiency: Evidence from China

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  • Li, Lifang
  • Qiu, Lexin
  • Xu, Fangming
  • Zheng, Xinwei

Abstract

We investigated the impact of green credit on the green investment efficiency of 588 listed Chinese green companies from 2009 to 2019 using an extended super-SBM model. Our findings reveal that green credit can enhance a firm's green investment efficiency, with a more prominent effect observed among state-owned enterprises and firms operating in high-growth industries. Further analysis suggests that the positive impact of green credit on green investment efficiency is moderated by corporate governance, innovations, and financial constraints. Our study provides novel evidence that underscores the importance of green credit in stimulating corporate green investment efficiency in China.

Suggested Citation

  • Li, Lifang & Qiu, Lexin & Xu, Fangming & Zheng, Xinwei, 2023. "The impact of green credit on firms' green investment efficiency: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 79(C).
    • Handle: RePEc:eee:pacfin:v:79:y:2023:i:c:s0927538x23000616
    DOI: 10.1016/j.pacfin.2023.101995
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    2. Di Lv & Chaobo Zhou, 2023. "Can the Green Finance Reform and Innovation Improve Green Investment of Heavily Polluting Enterprises?," Sustainability, MDPI, vol. 15(15), pages 1-15, July.

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    More about this item

    Keywords

    Green credit; Green investment efficiency; Super-SBM model; China;
    All these keywords.

    JEL classification:

    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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