Study On The Influence Of Green Credit Policy On Enterprise Performance

The implementation of the green credit policy is an essential step towards realizing the principles of green development.It serves as a financial instrument to advance the construction of ecological civilization,spur industrial reform,and transition towards sustainable development practices in pursuit of superior economic outcomes.Specifically,the purpose of the green credit policy is to promote the concentration of resources and loans to environmentally friendly enterprises and projects,reduce the flow of funds and loans to enterprises and projects that damage and pollute the environment,and prevent environmental and social problems by increasing financial support for low-carbon,green,and circular economies.The "Green Credit Guidelines" require financial institutions such as banks to incorporate the environmental performance of enterprises into the credit evaluation system when conducting credit business,provide differentiated loans to different types of enterprises,and raise the threshold for enterprises to raise funds.Heavy polluting enterprises are facing punitive high interest rate loans,which are used to curb the environmental problems caused by heavy polluting enterprises.In the capital chain of enterprises,the high proportion of bank credit can affect the production,operation,the stringent credit control exercised by financial institutions such as banks may restrict the financing options and investment prospects available to companies.Therefore,whether policies will affect the performance of heavily polluting enterprises is the issue of concern in this article.A quasi-natural experiment was devised in this study,with the primary objective of assessing the effects of the "Green Credit Guidelines" officially implemented in 2012.Data from 2008 to 2020 of A-share listed companies was utilized,and a dual-difference model was formulated to quantitatively evaluate the influence of green credit policies on corporate performance.This thesis first reviews the literature on green credit policies and corporate performance,laying the foundation for the subsequent hypothesis.This thesis uses the method of gradually adding control variables and fixed effects to conduct benchmark regression.In addition,in order to eliminate potential endogenous impacts,this thesis conducted a series of robustness tests,including parallel trend testing,changing the timing of policy occurrence,replacing explained variables,placebo testing,PSM-DID,changing industry definition methods,and adding control variables.This study also examined the intermediary variables of financing constraints,green innovation,and resource allocation to analyze their role between green credit and enterprise performance.The findings highlight that,in the short run,heavily polluting enterprises experience a decline in performance with the implementation of green credit policies compared to non-heavily polluting industries.The main pathway involves a rise in the financing constraints faced by firms and an increase in the adoption of green innovation.Such changes have an adverse effect on enterprise performance.In the long run,the implementation of green credit policies can improve the performance of heavily polluting enterprises.The main path is to optimize resource allocation to promote enterprise performance.Secondly,the study found that corporate social responsibility and economic policy uncertainty have opposing moderating effects on the correlation between green credit and the performance of the firms.Companies that undertake more social responsibility can positively moderate the impact of green credit on corporate performance.In contrast,higher uncertainty levels in economic policy negatively influence the correlation between green credit and corporate performance.Thirdly,in the long-term,the effect of green credit policies differs across firms with distinct property rights,industry concentrations,and scales.The promotion effect of green credit policies on non-state owned enterprises,highly monopolistic industries,and large-scale enterprises is more significant.Drawing insights from the findings,the thesis makes recommendations from the standpoint of the government,banks,and enterprises.First,the government must enhance the existing green credit policies continuously,make timely adjustments based on the situation of enterprises,focus on promoting technological innovation of polluting enterprises,establish a positive incentive and risk prevention mechanism for green credit,and guide enterprises to strengthen environmental protection awareness and carry out transformation and upgrading as soon as possible through market-oriented means to achieve win-win environmental and economic benefits.Second,banks should respond proactively to national policies,foster innovation of green credit products,and provide services to the real economy.They must also focus on improving their professional expertise in information audit and establish an information management platform to ensure that green credit policies are efficiently implemented.Third,enterprises should cater to policy trends,consciously disclose environmental protection and other information,optimize resource allocation and improve investment efficiency,maintain consistency in green credit policy requirements,enterprises must integrate the principles of green development into their entire production process.,take innovation as the core driving force,seize the development opportunities of green transformation,and coordinate development with green credit policies.Only under the conditions of multi-party cooperation and coordinated development can the green credit policy truly take root,which will aid in promoting the transition towards sustainable development and promoting the green transformation of society.Additionally,it will enable enterprises to make a more affirmative contribution towards global environmental protection initiatives.