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The effect of green investors on firms' trade credit

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  • Ge, Yiyun
  • Zhu, Hanbin
  • Zhang, Ruixuan

Abstract

Informal financing methods such as trade credit help alleviate firms' financing constraints. Using data on A-share listed companies from 2007 to 2023, we examine the impact of green investors on firms' trade credit. Results show that green investors increase firms' trade credit by mitigating agency problems, improving environmental information disclosure quality, improving analyst ratings and positive media coverage. Furthermore, the effect is more pronounced in firms without green CEOs, in non-heavy-polluting industries and in cities without environmental penalties. Meanwhile, our study empirically demonstrates that trade credit maintenance is one of the important motivations for corporate green governance, enriching research on green investors and corporate green governance from the perspective of governance motivation, offering empirical evidence to support sustainable and high-quality corporate development.

Suggested Citation

  • Ge, Yiyun & Zhu, Hanbin & Zhang, Ruixuan, 2026. "The effect of green investors on firms' trade credit," Emerging Markets Review, Elsevier, vol. 73(C).
    • Handle: RePEc:eee:ememar:v:73:y:2026:i:c:s1566014126000567
    DOI: 10.1016/j.ememar.2026.101492
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