Abstract
ABSTRACT This paper examines the impact of green credit policy on the cost of equity for firms by focusing on the 2012 Green Credit Guidelines (GCG2012) in China. Employing a standard difference-in-differences (DID) method and utilizing panel data from 2009 to 2018, we document that the implementation of GCG2012 leads to a higher cost of equity for treated firms identified as ‘two high and one surplus’. Additional analysis confirms the robustness of the finding. This paper adds to the literature by offering micro-level evidence on the implications of green credit policy on firm financing.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.