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Research on corporate environmental investment behaviour driven by green credit policies

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  • Jia, Haibo
  • Li, Rongnan
  • Guo, Yuanbo
  • Zhao, Zi

Abstract

Utilizing data from non-financial listed companies in Shanghai and Shenzhen A-share markets spanning from 2008 to 2021, and with a particular emphasis on the issuance of the Green Credit Guidelines in 2012, this study delves into the actual ramifications of the green credit policy on enterprises' environmental protection investments through the application of the difference-in-differences method. The research reveals that the green credit policy notably enhances enterprises' environmental investment activities. However, to a certain extent, political connections undermine the efficacy of this policy's implementation.Furthermore, our findings indicate that the positive influence of the green credit policy on environmental investments is more pronounced in state-owned enterprises. Simultaneously, in private enterprises, political connections exert a more substantial dampening effect on the implementation of green credit. Notably, in regions that are more market-oriented, political connections significantly weaken the impact of the green credit policy, thereby discouraging green investments.

Suggested Citation

  • Jia, Haibo & Li, Rongnan & Guo, Yuanbo & Zhao, Zi, 2025. "Research on corporate environmental investment behaviour driven by green credit policies," International Review of Financial Analysis, Elsevier, vol. 97(C).
    • Handle: RePEc:eee:finana:v:97:y:2025:i:c:s1057521924007324
    DOI: 10.1016/j.irfa.2024.103800
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