Abstract
Green finance is a driving force for energy conservation and green development. Based on the "Green Credit Guidelines" policy issued by China Banking Regulatory Commission (CBRC) in 2012 as a quasi-natural experiment, combined with the financial data of Chinese listed companies from 2008 to 2016, we constructed a DID model to study the impact of green credit as a financial instrument on enterprise risk taking. The results show that green credit can significantly improve enterprise risk taking level. This effect is more effective for state-owned enterprises, enterprises with flexible strategies and enterprises with high information transparency. Furthermore, mechanism analysis indicates that green credit can increase enterprise risk taking level by restraining the inefficient investment behavior and stimulating the endogenous power of enterprises' innovation.
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