Abstract
Based on the green credit policy enacted in China since 2012, our study examines the monitoring role of banks in promoting corporate pollution abatement. The results show that the green credit policy has a significantly positive effect on corporate green innovation for polluting firms. Furthermore, we find that the positive effect is more pronounced when banks substitute institutional investors and media to monitor corporate environmental performance, in the product market of intense peer competition, and in regions where environmental regulatory enforcement is strong. These results suggest that the green credit policy strengthens the monitoring force of banks, thus promoting corporate green transformation and development.
Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
