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Green Credit Policy, Analyst Attention, and Corporate Green Innovation

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  • Li Fan

    (School of Law, Jilin University, Changchun 130000, China)

  • Weidong Xu

    (School of Law, Jilin University, Changchun 130000, China)

Abstract

As global sustainability goals gain importance, fostering green innovation has become critical for businesses to reduce environmental impact and enhance sustainability. Green credit policies, which incentivize firms to adopt eco-friendly practices, are a powerful tool in encouraging green innovation. This study examines the impact of green credit policies on corporate green innovation in China, with a focus on high-pollution enterprises, using data from A-share listed companies from 2007 to 2023. The research highlights the significant role of analyst attention in moderating the effectiveness of these policies. The findings show that while green credit policies significantly promote the quantity and quality of green innovation, the impact is further amplified when firms receive higher levels of attention from analysts. The study also finds that larger firms and those with excess cash are more likely to respond positively to green credit policies, as they have the resources to invest in green technologies. This research provides valuable insights into the relationship between green credit policies, corporate green innovation, and the moderating effect of analyst attention, offering practical recommendations for policymakers and businesses aiming to achieve sustainable development goals.

Suggested Citation

  • Li Fan & Weidong Xu, 2025. "Green Credit Policy, Analyst Attention, and Corporate Green Innovation," Sustainability, MDPI, vol. 17(8), pages 1-20, April.
  • Handle: RePEc:gam:jsusta:v:17:y:2025:i:8:p:3362-:d:1631437
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    References listed on IDEAS

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    Cited by:

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    2. Chen, Gaocai & Wang, Fan, 2025. "Driving green development: The influence of green credit and informatization-industrialization integration on reducing corporate carbon emissions," International Review of Financial Analysis, Elsevier, vol. 106(C).
    3. Zheng, Ye & Bao, Xuhan & Zhao, Shijie, 2025. "Renewable energy policy and environmental governance performance," Finance Research Letters, Elsevier, vol. 82(C).
    4. Youxuan Wang & Zhuohang Li, 2025. "How Do Core Management Team Network Ties Affect Green Innovation? Evidence from the Chinese ICT Industry," Sustainability, MDPI, vol. 17(7), pages 1-40, April.
    5. Wang, Yanlin & Ziya, A. & Li, Mengmeng & Li, Guangrong, 2025. "Digital transformation, green behaviors, and environmental policy heterogeneity in resource-based enterprises," International Review of Economics & Finance, Elsevier, vol. 102(C).
    6. Wang, Zheng & Liu, Hongchao, 2025. "Can intelligent transformation enhance corporate green innovation performance?," Finance Research Letters, Elsevier, vol. 81(C).
    7. Yang, Ping & Yu, Fuchang & Gao, Pengzhao, 2025. "Digital economy and high-quality agricultural development," Finance Research Letters, Elsevier, vol. 85(PD).
    8. Shi, Lelai & Lin, Hong & Tan, Bing, 2025. "The impact of the coupling coordination between new-type urbanization and the digital economy on ecological efficiency," International Review of Financial Analysis, Elsevier, vol. 105(C).
    9. Liang, Yanzi & Le, Han & Lu, Zheng, 2025. "How does strict financial supervision affect corporate green credit: Empirical evidence from the new capital management regulation," Finance Research Letters, Elsevier, vol. 86(PB).
    10. Xu, Xinkuo & Liu, Qianyu, 2025. "Transformation of innovation in heavily polluting enterprises under resource constraints: The role of green finance policy," International Review of Economics & Finance, Elsevier, vol. 103(C).
    11. Jiang, Haiyang & Yang, Zeyu, 2025. "Green financial policies and executive opportunistic share reduction," Finance Research Letters, Elsevier, vol. 85(PB).
    12. Ge, Tao & Hao, Zixuan & Dai, Dongyu, 2025. "Independent R&D or technology imports? The induced innovation effects of energy intensity constraints," Technology in Society, Elsevier, vol. 83(C).
    13. Zhou, Jingyi & Xie, Mengyuan, 2025. "Supply chain risk perception and corporate green innovation bubbles," Finance Research Letters, Elsevier, vol. 85(PC).
    14. Ran Yi & Yunfan Zhang & An Chen, 2026. "Does corporate climate risk promote climate response actions? Empirical evidence from China," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 31(3), pages 1-33, March.
    15. Wang, Jinren & Chen, Yizhi, 2025. "Does carbon risk promote green innovation in manufacturing companies?," International Review of Financial Analysis, Elsevier, vol. 108(PA).

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