Can green credit policy under the concept of green economy curb corporate financialization to promote sustainable development?

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60460709%3A41110%2F23%3A92958" target="_blank" >RIV/60460709:41110/23:92958 - isvavai.cz</a>

Result on the web

<a href="https://www.frontiersin.org/articles/10.3389/fenvs.2023.1127380/full" target="_blank" >https://www.frontiersin.org/articles/10.3389/fenvs.2023.1127380/full</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.3389/fenvs.2023.1127380" target="_blank" >10.3389/fenvs.2023.1127380</a>

Result language

angličtina

Original language name

Can green credit policy under the concept of green economy curb corporate financialization to promote sustainable development?

Original language description

Under the concept of green economy, discovering how to utilize the Green Credit Guidelines in a way that guides enterprises to focus on their industries and to promote sustainable development has become an important and urgent objective. It is also conducive to the successful implementation of the double carbon target. This paper uses Chinese A share listed enterprises from 2007 to 2018 as its research object to explore whether green credit policy is conducive to reducing the financialization behavior of heavily polluting enterprises to curb their transformation from real to virtual. It is found that the financialization of heavily polluting enterprises has significantly decreased since the implementation of the Green Credit Guidelines in 2012, and these results remain unchanged after a series of robustness tests. A heterogeneity analysis shows that state owned enterprises are subject to stronger policy effects than non state owned enterprises. Furthermore, the studied policy effects are stronger in the eastern regions of China than in its central and western regions, and these effects are stronger in green provinces than in polluting provinces. A mechanism study finds that credit constraints and corporate innovation play a partially mediating role in the effect of green credit policy on corporate financialization. Further studies find that both the level of internal corporate governance and external monitoring contribute to the disincentivizing effect of green credit policy on financialization. Moreover, through an exploration of the possible economic consequences of the examined policy, it is found that the green credit policy reduces corporate financialization in favor of reducing inefficient corporate investment and major shareholders tunneling so that the level of corporate investor protection is improved. The findings validate the effectiveness of the Green Credit Guidelines and provide empirical evidence and empirical support for reducing corporate financialization to curb enterprises transformation from real to virtual and thus promoting the development of sustainability.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50201 - Economic Theory

Project

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Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2023

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Frontiers in Environmental Sciences

ISSN

2296-665X

e-ISSN

2296-665X

Volume of the periodical

11

Issue of the periodical within the volume

1127380

Country of publishing house

CH - SWITZERLAND

Number of pages

16

Pages from-to

1-16

UT code for WoS article

000921224800001

EID of the result in the Scopus database

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