Redistribution of China’s Green Credit Policy among Environment-Friendly Manufacturing Firms of Various Sizes: Do Banks Value Small and Medium-Sized Enterprises?

Zhang, Yuming; Xing, Chao; Tripe, David

doi:10.3390/ijerph18010033

Cited by 22 publications

(14 citation statements)

References 64 publications

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“…To make the comparison and highlight the characteristics of heavily polluting enterprises, we append the results of the whole sample in a robustness test. In line with the prior research (Zhang et al , 2021; Hu et al , 2021), we select 16 heavy-polluting industry categories (e.g. mining, steel, pharmaceutical industries, etc. )…”

Section: Methodsmentioning

confidence: 99%

External corporate governance and assurance of corporate social responsibility reports: evidence from China

Liu

Luo

2023

SAMPJ

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Purpose This paper aims to verify whether the legitimate pressure of external forces on heavily polluting firms’ corporate social responsibility (CSR)-related behaviors affect firms’ assurance strategy in the Chinese context. The authors argue that, under external pressure, as a source of legitimacy, the assurance over CSR reports allows the business behaviors of heavy polluters to be recognized by society. Design/methodology/approach This paper sampled listed heavy polluters in China from 2011 to 2018 and used the multiperiod logit model to examine the effects of external corporate governance on firms’ assurance decisions. Principal component analysis methods were used to construct a comprehensive framework of external corporate governance. The indicators were obtained from the China Stock Market and Accounting Research databases, the NERI Report and the China Urban Statistical Yearbook. Findings This paper confirms that external corporate governance positively affects firms’ assurance decisions, and good financial conditions, well-governed internal controls and sufficient government subsidies positively moderate this effect. Practical implications The findings provide feasible ways to encourage firms’ high-quality corporate environmental information disclosure, thus providing valuable guidance for policymakers and other stakeholders to effectively supervise firms’ CSR behaviors. Social implications The findings are of great importance in encouraging high-quality corporate environmental information disclosures, improving the support of capital markets among developing countries and drawing social attention to the environmental protection and social responsibility of heavy polluters. Originality/value The research extends the current research in the field of social environmental accounting by using legitimacy theory to explain firms’ assurance motivations. Additionally, this paper focuses on the practices of assurance services in the emerging economy and provides suggestions for developing assurance over CSR reports.

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Section: Methodsmentioning

confidence: 99%

External corporate governance and assurance of corporate social responsibility reports: evidence from China

Liu

Luo

2023

SAMPJ

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“…However, Y. Zhang et al. (2021) note that SMEs that invest in environmental CSR practices face free rider and patent protection problem which would also weaken their return on environmental CSR projects. Moreover, given SMEs' relatively more significant financial constraints, they may overall have a lower level of financialization, and our proposed relationship between GBP and level of financialization may be less strong than that for non‐SMEs.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…This finding could be explained by the fact that SMEs tend to make disruptive transformation which might generate less profit in the short period of time (Parhankangas et al., 2014). Additionally, there are more significant constraints in credit for SMEs due to the lack of expertise and high‐value assets as collaterals (Gerlach‐Kristen et al., 2013; Jiang et al., 2014; Y. Zhang et al., 2021) so that fewer resources could be invested to improve the financial performance of the firms. Also, SMEs' innovation in environmental CSR practices is less protected by patents, which means their practices would be easily imitated by other companies and could hardly be a competitive advantage for them to make profits (Y. Zhang et al., 2021).…”

Section: Empirical Analysismentioning

confidence: 99%

“…Also, when referring to the results of SMEs and Non‐SMEs, a more significant moderating effect of the FBD ratio could be found among SMEs, supporting H 3b . The coefficient of GBP is insignificant for Non‐SMEs, while it is significantly negative for SMEs, which could be explained by the higher financial constraints, and intensive investment in revolutionary changes by SMEs (Parhankangas et al., 2014; Y. Zhang et al., 2021). As for the interaction term, the coefficient of GBP*FBD is significant among SMEs in column (2), while GBP*FBD holds an insignificant value among Non‐SMEs in column (4), supporting H 3b .…”

Section: Empirical Analysismentioning

confidence: 99%

“…This finding could be explained by the fact that SMEs tend to make disruptive transformation which might generate less profit in the short period of time (Parhankangas et al, 2014). Additionally, there are more significant constraints in credit for SMEs due to the lack of expertise and high-value assets as collaterals (Gerlach-Kristen et al, 2013;Jiang et al, 2014;Y. Zhang et al, 2021) so that fewer resources could be invested to improve the financial performance of the firms.…”

Section: 31mentioning

confidence: 99%

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Green business practices and corporate financialization: Role of female directors in Chinese small and medium enterprises (SMEs)

Huang

Mirza

2022

J Corp Accounting Finance

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This study examines the impact of green business practices (GBP) on firm financialization and, analyzes the moderating role of female directorship in China.A-share listed non-financial firms are sampled (total 1049 firms including 284 small and medium enterprises [SMEs]) from Shanghai and Shenzhen stock exchanges from 2009 to 2020. OLS and fixed-effects regression techniques are applied and the results show a significantly positive relationship between GBP and firms' financialization level (FIN) in the whole sample. Also, greater female directorship strengthens this relationship in Chinese firms. However, for SMEs in China, this study does not support a relationship between GBP and firm financialization. Nonetheless, the moderating role of female directorship is more significant among SMEs. The findings of this study may assist policymakers in devising policies tailored separately for SMEs and non-SMEs in China.

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Can green credit policies improve corporate ESG performance?

Han,

Shi,

Zheng

2023

Sustainable Development

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Green credit policy, as an environmental regulation instrument in the financial sector, is gradually having an impact on corporate performance in environmental, social, and corporate governance (ESG). Based on the implementation of the Green Credit Guidelines policy, this paper investigates the impact of green credit policies on corporate ESG performance from 2011 to 2019 using the double‐difference propensity score matching method (PSM‐DID) and the Heckman two‐stage method, using a sample of A‐share listed companies. It was found that the implementation of the Green Credit Guidelines effectively improved the ESG performance of firms in green credit‐restricted industries relative to non‐green credit‐restricted industries. It is further found that this is mainly due to the increased green focus of corporate executives, while the incremental effect of green credit policies on corporate ESG performance is further strengthened by the increased quality and quantity of corporate green technology innovation. Finally, heterogeneity analysis reveals that the boosting effect of green credit policy on ESG performance of enterprises in green credit‐restricted industries is more prominent in the sample of enterprises with more analyst attention, less financially developed regions and private ones. How to leverage the green credit policy dividend to enhance the ESG performance of enterprises, further refine, and improve the green credit policy to help enterprises' sustainable development are the most direct policy implications of this paper.

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Redistribution of China’s Green Credit Policy among Environment-Friendly Manufacturing Firms of Various Sizes: Do Banks Value Small and Medium-Sized Enterprises?

Cited by 22 publications

References 64 publications

External corporate governance and assurance of corporate social responsibility reports: evidence from China

External corporate governance and assurance of corporate social responsibility reports: evidence from China

Green business practices and corporate financialization: Role of female directors in Chinese small and medium enterprises (SMEs)

Can green credit policies improve corporate ESG performance?

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