The impact of green credit on firms' green investment efficiency: Evidence from China

We investigated the impact of green credit on the green investment efficiency of 588 listed Chinese green companies from 2009 to 2019 using an extended super-SBM model. Our findings reveal that green credit can enhance a firm's green investment efficiency, with a more prominent effect observed among state-owned enterprises and firms operating in high-growth industries. Further analysis suggests that the positive impact of green credit on green investment efficiency is moderated by corporate governance, innovations, and financial constraints. Our study provides novel evidence that underscores the importance of green credit in stimulating corporate green investment efficiency in China.

Automated summary

Using an extended super-SBM model, we examined the impact of green credit on the green investment efficiency of 588 listed Chinese green companies from 2009 to 2019. The results showed that green credit can improve a firm's green investment efficiency, especially for state-owned enterprises and those in high-growth industries. Further analysis revealed that corporate governance, innovations, and financial constraints moderate the positive effect of green credit on green investment efficiency. This study provides novel evidence highlighting the importance of green credit in promoting corporate green investment efficiency in China.