Research On The Reputation Effect Of Green Credit Of Commercial Banks

As a new economic form of coordinated development of social economy and ecological environment,"green economy" has become an inevitable choice for the new normal period of economic development.As one of the ways to promote the development of green economy,the role of green finance cannot be ignored.However,due to the large number of beneficiaries of green projects and their lack of exclusivity,it has affected the comprehensive income of green finance and the enthusiasm of financial institutions to carry out green credit.How to encourage more financial institutions to actively develop green financial projects has become one of the key issues that need to be studied in the process of increasing green finance and supporting the development of green economy.This paper takes the social effect and individual effect contradiction of commercial bank green credit as the starting point,and analyzes the reputation effect of commercial bank green credit.On the basis of the review of the existing literature,the theoretical analysis is carried out from the following three parts,firstly analyzing the social and individual effects of commercial banks’ green credit;secondly,based on the theory of social responsibility,the commercial bank’s green credit is regarded as a social responsibility of its performance,analyze the reputation formation mechanism of commercial banks’ green credit;then analyze the mechanism of reputation on the performance of commercial banks based on reputation capital effect,reputation information effect and reputation psychological value effect;finally put forward research hypothesis.Based on the above theoretical analysis,this paper takes 16 listed commercial banks with mature green credit development from 2010 to 2016 as a sample,first improves the Rep Trak reputation measurement model,measures the sample bank reputation,and then uses the global principal component analysis method.The comprehensive operation performance of the sample bank is measured,and finally the multivariate linear regression method is used to empirically test the above research hypothesis.Tested separately:(1)the impact of commercial banks’ green credit on their business performance;(2)the impact of commercial banks’green credit on their reputation;(3)the impact of commercial bank reputation on their business performance;(4)reputation in commercial banks The mediating effect of green credit on its business performance.The results show that:(1)The green credit of commercial banks has a significant negative impact on its business performance.The greater the implementation of green credit in commercial banks,the worse its operating performance,which may be the main reason for weakening the enthusiasm of commercial banks for green credit;(2)Commercial banks’green credit has a significant positive impact on their reputation,and this impact has a certain lag.That is,the greater the commercial banks’implementation of green credit,the better their reputation will be in the current and subsequent periods.Performance;(3)The reputation of commercial banks has a significant positive impact on their business performance;(4)The test results of the mediating effect show that the reputation plays a significant role in the process of the impact of commercial banks’ green credit on their business performance.In the end,this paper takes the Industrial Bank with the best green credit implementation as an example.Using the event analysis method,it is concluded that the cumulative abnormal rate of the Green Credit of Industrial Bank in the event window is significantly higher than that of other banks in the same industry,thus verifying the green credit reputation of commercial banks.The impact mechanism of effects on the capital market.The above studies show that the development of commercial bank green credit business can help to improve its reputation level,and the improvement of reputation level will help improve its business performance.This conclusion indicates that the reputation effect of green credit of commercial banks can alleviate the contradiction between social effects and individual performance of green credit.This not only provides theoretical support for commercial banks to comprehensively evaluate green credit performance,but also provides new incentives for commercial banks to carry out green credit.Policy reference.This paper proposes suggestions on how to improve the enthusiasm and reputation construction of commercial banks in promoting green credit,from the perspective of the government-represented regulatory agencies,the financial institutions represented by commercial banks,and the media level represented by news reports.The theoretical significance of this paper is to enrich the existing research perspectives and research paths of green credit,and to supplement the research on the reputation effect of green credit of commercial banks.The practical significance is to provide information base for commercial banks’ green credit,so that commercial banks realize that green is promoted.The reputational effect of credit has thus increased the enthusiasm of commercial banks to promote green credit.