Fostering firm productivity through green finance: Evidence from a quasi-natural experiment in China

Kong, Gaowen; Wang, Shuai; Wang, Yanan

doi:10.1016/j.econmod.2022.105979

Cited by 24 publications

(6 citation statements)

References 42 publications

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“…In terms of productivity, Feng and Liang state that green finance has a negative impact on firms’ total factor productivity [ 35 ]. However, Kong argue that green finance increases the total factor productivity of firms in China’s heavily polluting industries [ 36 ]. In terms of enterprise value, Yao point out that green credit raises the threshold of enterprise financing by forming credit constraints on heavy polluting enterprises, which, in turn, reduces the financial performance of enterprises [ 37 ].…”

Section: Literature Reviewmentioning

confidence: 99%

Green finance improves enterprises’ environmental, social and governance performance: A two-dimensional perspective based on external financing capability and internal technological innovation

Zhang,

Wei

2024

PLoS ONE

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This paper takes the establishment of the Green Financial Reform and Innovation Pilot Zone (GFPZ) in 2017 as a natural experiment, adopts the data of a-share industrial listed enterprises in Shanghai and Shenzhen from 2010 to 2020, and utilizes the difference-in-differences (DID) method to carry out empirical tests. The results show that (1) GFPZ policy significantly improves the environmental, social, and governance (ESG) performance of enterprises, and the positive effect is mainly realized by improving the external financing ability and green-technology innovation level of enterprises. (2) There is heterogeneity in the impact of GFPZ policy on the ESG performance of firms with different equity natures and internal control levels. (3) Green finance promotes active corporate social responsibility, and it can further improve environmental governance in the regions where it operates. This paper provides a useful supplement to the comprehensive understanding of green-finance policy effects and ESG impact factors, and it is of great significance in mitigating the negative environmental and social externalities caused by the excessive pursuit of economic benefits by enterprises.

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Section: Literature Reviewmentioning

confidence: 99%

Green finance improves enterprises’ environmental, social and governance performance: A two-dimensional perspective based on external financing capability and internal technological innovation

Zhang,

Wei

2024

PLoS ONE

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“…Third, green financial development. Green finance can provide financial support for regional pollution enterprises, promote green innovation and thus improve green total factor productivity (Kong et al 2022 ; Zhong et al 2022 ). At the same time, green finance will also promote enterprises’ green innovation development by reducing financial restrictions and transaction costs (Zhang 2021 ; Huang et al 2022 ).…”

Section: Literature Reviewmentioning

confidence: 99%

Towards green economic recovery: how to improve green total factor productivity

Wang

2023

Econ Change Restruct

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Achieving green economic recovery is crucial to improving environmental quality and sustainable development. This study examines the influence of new digital infrastructure on green total factor productivity (GTFP) using panel data from 30 regions in China from 2008 to 2019. The results are as follows: (1) New digital infrastructure has a significant improvement effect on GTFP. After a series of robustness tests, the conclusion is still valid. (2) The improvement effect of new digital infrastructure on GTFP shows significant heterogeneity. In regions with high industrial agglomeration, high environmental regulation and strong government environmental preference, the improvement effect of new digital infrastructure on GTFP is more obvious. (3) New digital infrastructure improves GTFP through green technology innovation and factor allocation optimization. The government should strengthen the fiscal incentives for green technology development while increasing R&D investment in fiscal expenditure, thus promoting green economic recovery.

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“…This also contributed to a reduction in overcapacity and energy consumption. It has also been proposed as a policy tool to stop lending to erring zombie firms in terms of environmental and pollution parameters (Kong, Wang, & Wang, 2022). Given the prominent position that China holds globally to improve environment-related considerations (Wang, Wang, Guan, & Taghizadeh-Hesary, 2023), it is of the utmost importance for the government to ensure that zombies do not undo their efforts.…”

Section: Preventing Zombification and Policy Implicationsmentioning

confidence: 99%

Surviving beyond expiry: a systematic literature review of zombie firms

Upadhyay,

Baag

2023

CAFR

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PurposeThis paper reviews the literature on zombie firms to provide a holistic view by delineating their formation, impact, widespread nature, prevention and policy implications.Design/methodology/approachThis paper uses a systematic literature review methodology, in which 76 papers published in journals ranked on the Australian Business Deans Council (ABDC) 2022 list were reviewed. The study period was from 2000 to 2022.FindingsAmong the main findings, the widespread problems of zombie firms were evident. The authors found that consistent support, either in the form of government grants or a weak financial framework, was responsible for their formation. The suboptimal performance of factors of production, depressed job creation, low innovation and overall negative impact on economic activity are the consequences of zombification. This can be controlled by ensuring better bankruptcy codes, focused on government assistance, technology use and better due diligence by banks.Practical implicationsThis review serves as a reference point for future researchers as a cohesive and holistic study presenting a full picture of the problem, so that the proposed solutions are robust and tenable.Originality/valueThis review is among the initial attempts to comprehensively study published work on zombie firms in terms of analyzing their region-specific nature, with an emphasis on definition, causes, impact and prevention.

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Fostering firm productivity through green finance: Evidence from a quasi-natural experiment in China

Cited by 24 publications

References 42 publications

Green finance improves enterprises’ environmental, social and governance performance: A two-dimensional perspective based on external financing capability and internal technological innovation

Green finance improves enterprises’ environmental, social and governance performance: A two-dimensional perspective based on external financing capability and internal technological innovation

Towards green economic recovery: how to improve green total factor productivity

Surviving beyond expiry: a systematic literature review of zombie firms

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