Stopgap or sustainable strategy? The impact of China’s green credit guidelines policy on corporate ESG performance

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The Green Credit Guidelines significantly boost the ESG scores of firms involved, especially in environmental performance.
ESG scores of firms heavily dependent on bank credit show improvement, signaling potential speculative behavior in response to the guidelines.
Analysis utilizes the difference-in-differences model combined with robustness tests like propensity score matching and permutation tests for validation across 2007 to 2019 data. Strong government support and a high percentage of female executives help lessen speculative tendencies among companies while financial executives may encourage it.

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Investigates how China’s Green Credit Guidelines influence ESG scores, indicating potential speculative behavior among firms.

Guo et al. (2024) studied this question.

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