Research On The Financing Impact Of Senior Executives’ Public Service Experience On Green Credit

At present,China is in a critical period of deepening industrialization,and the contradiction between economic growth and ecological environmental protection is becoming increasingly prominent.As the leading force to promote China’s green and sustainable economic development,government is the key to solving the ecological and economic dilemma.Governments at all levels not only have discretionary power to approve and formulate policies,but also have a lot of critical resources,which will directly influence the operation of enterprises.Enterprises can obtain additional policy and resource advantages,reduce their policy and environmental risks,and ease financing constraints by establishing political links.However,too much government intervention may also cause distortions in the allocation of market resources,increase in inefficient investment,and even lead to rent-seeking and collusion problems.Therefore,it is of great significance to adhere to the improvement of various environmental protection systems and build a coordinated and healthy relationship between government and enterprises for the green transformation of the pollution industry and the stable operation of society.Based on the signal theory,rent-seeking theory and other theoretical foundations,this paper takes the official experience of senior executives as the standard of government-enterprise relations,and examines its impact on the realization of financing constraints of green credit.This paper selects the relevant data of listed companies in the pollution industry from 2008to 2020,and first uses the OLS model to test the impact of senior executives’ public service experience on the financing constraints of polluting enterprises,and draws the conclusion that senior executives’ public service experience can alleviate the financing constraints of enterprises.Then the double difference method is used to test the impact of corporate executives’ public service experience on the financing constraints of green credit policies before and after the official implementation of the Green Credit Guidelines in 2012.The empirical results show that compared with other polluting enterprises,enterprises with senior executives’ public service experience are more significantly affected by the green credit policy.That is,the green credit policy can reduce the financing advantages brought by senior executives’ public service experience,balance the financing conditions of different enterprises,and improve the effectiveness of environmental governance.After endogenous analysis and a series of robustness tests,the conclusion remains robust.This paper then analyzes the heterogeneity.The results show that the influence of senior executives’ public service experience on green credit policies and financing constraints are more valuable in the sample of state-owned enterprises and the central and eastern regions.From the perspective of industry types,it can significantly affect capital-intensive and technology-intensive enterprises,and has little impact on labor-intensive enterprises.This result broadens the scope of investigation on the effect of green credit policy.This empirical study shows that the political connection established by senior executives’ public service experience can still help the development of enterprises,and the implementation of green credit policy can effectively regulate the unhealthy relationship between government and enterprises,and change the environmental protection decisions of local governments by affecting the quality of corporate governance and information disclosure,thus reducing the positive impact of senior executives’ public service experience on the financing of polluting enterprises.Therefore,efforts should be made to build a fair and open external governance environment,guide enterprises to optimize internal control and continue to promote the marketization process.Improving the quality of information disclosure of such enterprises and optimizing the performance evaluation criteria of government officials provide an effective way to alleviate social financing conditions and sustainable development.The results of this paper highlight the importance of optimizing the internal control of enterprises and clarifying the responsibilities of government environmental supervision,which will help us to re-examine the value of political relevance and the boundary of interaction between government and business.