Corporate environmental governance under the coordination of fiscal and financial policies: The case of green credit subsidy policy

Abstract

This study analyzes data from China's A-share non-financial listed firms (2009–2020) using a DID model to assess how green credit subsidy policies affect corporate environmental performance. Findings show significant performance improvements in heavily polluting companies, attributable to enhanced innovation and reduced operational costs, as confirmed by robustness tests. The policy's impact is more significant on non-state, small and medium-sized, and companies in less developed regions.