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The combined impacts of fiscal and credit policies on green firm's investment opportunity: Evidences from Chinese firm‐level analysis

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  • Kai Chang
  • Ning Lu
  • Ze Sheng Li
  • Yi Ran Wang

Abstract

This article investigates the combined impact of fiscal and credit policies on green‐firm investment opportunities using firm‐level panel data of green industries in China. Our empirical results demonstrate that subsidies, tax rebates, and green credit loans have significantly U‐shaped nexuses with green‐firm investment opportunities: Subsidies, tax rebates, and green credit policies generate significant interactions on green‐firm investment opportunities. External financing constraints may weaken the incentive of subsidies, tax rebates, and green credit loans on green‐firm investment opportunities.

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  • Kai Chang & Ning Lu & Ze Sheng Li & Yi Ran Wang, 2021. "The combined impacts of fiscal and credit policies on green firm's investment opportunity: Evidences from Chinese firm‐level analysis," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(7), pages 1822-1835, October.
    • Handle: RePEc:wly:mgtdec:v:42:y:2021:i:7:p:1822-1835
    DOI: 10.1002/mde.3347
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