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Green credit policy and maturity mismatch risk in polluting and non-polluting companies

  • Yaowei Cao
    ,
  • Youtang Zhang
    ,
  • Liu Yang
    ,
  • Rita Yi Man Li
    ,
  • M. James C. Crabbe
  • Wuhan University of Technology
    ,
  • Hong Kong Shue Yan University
    ,
  • University of Oxford
    ,
  • Shanxi University
Research Output: Contribution to journal Article Peer-review

Open access

Sustainable Development Goals

  • SDG 8 - Decent Work and Economic Growth
    SDG 8 Decent Work and Economic Growth

Abstract

A major issue is whether the implementation of China’s green credit policy will affect the coordinated development of corporate sustainable operations and environmental protection. This paper used a propensity score matching—difference-in-differences (PSM-DID) model to analyse the impact of China’s green credit policy implemented in 2012 on the maturity mismatch risk between investment and financing in polluting and non-polluting companies. We found that: (1) green credit policies can help reduce the risk of maturity mismatch between investment and financing for polluting companies; (2) the reduction of short-term bank credit is the main way to curb the risk of maturity mismatch risk between investment and financing; (3) the green credit policy has no obvious mitigation effect on the risk of maturity mismatch between investment and financing among polluting companies with environmental protection investment; (4) the mitigation effect of the green credit policy on the maturity mismatch risk is more significant in state-owned polluting companies and polluting companies in areas with a lower level of financial development. The empirical results show that China’s green credit policy helps stimulate the environmental protection behaviour of companies, as well as helping alleviate the capital chain risk caused by the maturity mismatch between investment and financing. In addition, despite the effect of heterogeneity, it can solve the contradiction between environmental protection and economic development.

Publication Information

Output type

Research Output: Contribution to journal Article Peer-review

Original language

English

Article number

3615

Pages from-to (Number of pages)

Pages 3615-3638

Journal (Volume, Issue Number)

Sustainability (Switzerland) (Volume 13, Issue 7)

Publication milestones

  • Accepted/In press - 12/03/2021
  • Published - 24/03/2021

Publication status

Published - 24/03/2021

ISSN

2071-1050

External Publication IDs

  • handle.net: 10547/624900
  • Scopus: 85103829770

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