Does Green Credit Policy Work in China? The Correlation between Green Credit and Corporate Environmental Information Disclosure Quality
Roughly a decade ago, the Chinese government implemented a green credit policy aimed at lowering emissions from highly polluting corporations through improving information disclosure quality during the loan process. According to policy guidelines, banks may provide financial support only for new pro...
Main Authors: | , , , |
---|---|
Format: | Article |
Language: | English |
Published: |
MDPI AG
2019-01-01
|
Series: | Sustainability |
Subjects: | |
Online Access: | https://www.mdpi.com/2071-1050/11/3/733 |
id |
doaj-f30c93e03db74d71913f5c9dd96db3af |
---|---|
record_format |
Article |
spelling |
doaj-f30c93e03db74d71913f5c9dd96db3af2020-11-25T00:28:49ZengMDPI AGSustainability2071-10502019-01-0111373310.3390/su11030733su11030733Does Green Credit Policy Work in China? The Correlation between Green Credit and Corporate Environmental Information Disclosure QualityFeng Wang0Siyue Yang1Ann Reisner2Na Liu3School of Economics and Management, Northwest University, Shaanxi 710069, ChinaSchool of Economics and Management, Northwest University, Shaanxi 710069, ChinaDepartment of Media and Cinema Studies, University of Illinois at Urbana-Champaign, Urbana, Il 61801, USASchool of Economics and Management, Northwest University, Shaanxi 710069, ChinaRoughly a decade ago, the Chinese government implemented a green credit policy aimed at lowering emissions from highly polluting corporations through improving information disclosure quality during the loan process. According to policy guidelines, banks may provide financial support only for new projects that passed an environmental assessment or were explicitly designed to decrease pollution. This paper used panel data from 320 companies in heavy polluting industries listed on the Shanghai Stock Exchange from 2008 to 2016 and adopted a fixed effects regression model to examine whether collusion between local governments and Chinese listed companies has prevented the green credit policy from achieving its target. The results show that there is no significant positive correlation between CEID and corporate green financing, which means that the environmental information disclosure system does not send valuable signals to the market and has failed to become a decision-making tool for bank-risk management.https://www.mdpi.com/2071-1050/11/3/733green creditcorporate environmental information disclosurecollusionrisk management |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Feng Wang Siyue Yang Ann Reisner Na Liu |
spellingShingle |
Feng Wang Siyue Yang Ann Reisner Na Liu Does Green Credit Policy Work in China? The Correlation between Green Credit and Corporate Environmental Information Disclosure Quality Sustainability green credit corporate environmental information disclosure collusion risk management |
author_facet |
Feng Wang Siyue Yang Ann Reisner Na Liu |
author_sort |
Feng Wang |
title |
Does Green Credit Policy Work in China? The Correlation between Green Credit and Corporate Environmental Information Disclosure Quality |
title_short |
Does Green Credit Policy Work in China? The Correlation between Green Credit and Corporate Environmental Information Disclosure Quality |
title_full |
Does Green Credit Policy Work in China? The Correlation between Green Credit and Corporate Environmental Information Disclosure Quality |
title_fullStr |
Does Green Credit Policy Work in China? The Correlation between Green Credit and Corporate Environmental Information Disclosure Quality |
title_full_unstemmed |
Does Green Credit Policy Work in China? The Correlation between Green Credit and Corporate Environmental Information Disclosure Quality |
title_sort |
does green credit policy work in china? the correlation between green credit and corporate environmental information disclosure quality |
publisher |
MDPI AG |
series |
Sustainability |
issn |
2071-1050 |
publishDate |
2019-01-01 |
description |
Roughly a decade ago, the Chinese government implemented a green credit policy aimed at lowering emissions from highly polluting corporations through improving information disclosure quality during the loan process. According to policy guidelines, banks may provide financial support only for new projects that passed an environmental assessment or were explicitly designed to decrease pollution. This paper used panel data from 320 companies in heavy polluting industries listed on the Shanghai Stock Exchange from 2008 to 2016 and adopted a fixed effects regression model to examine whether collusion between local governments and Chinese listed companies has prevented the green credit policy from achieving its target. The results show that there is no significant positive correlation between CEID and corporate green financing, which means that the environmental information disclosure system does not send valuable signals to the market and has failed to become a decision-making tool for bank-risk management. |
topic |
green credit corporate environmental information disclosure collusion risk management |
url |
https://www.mdpi.com/2071-1050/11/3/733 |
work_keys_str_mv |
AT fengwang doesgreencreditpolicyworkinchinathecorrelationbetweengreencreditandcorporateenvironmentalinformationdisclosurequality AT siyueyang doesgreencreditpolicyworkinchinathecorrelationbetweengreencreditandcorporateenvironmentalinformationdisclosurequality AT annreisner doesgreencreditpolicyworkinchinathecorrelationbetweengreencreditandcorporateenvironmentalinformationdisclosurequality AT naliu doesgreencreditpolicyworkinchinathecorrelationbetweengreencreditandcorporateenvironmentalinformationdisclosurequality |
_version_ |
1725334233160876032 |