Year: 2025
Type: article
Abstract: Taking Chinese A-share heavy polluters as a research sample from 2009 to 2021, this paper investigates the impact of ESG performance on bank credit.It is found that high-quality ESG performance can significantly increase loan size and reduce firms' loan costs, and the Green Credit Guidelines issued in 2012 strengthen the impact of firms' ESG performance on bank credit.Meanwhile, mechanistic analyses show that good ESG performance influences bank credit decisions by reducing banks' expectations of corporate business risks.To advance the adoption of ESG principles by enterprises and banks, this study offers some recommendations for government, banks, and enterprises.These measures collectively promote a collaborative approach to embedding ESG principles in financial and corporate practices, driving progress toward sustainable development.
Authors: Chu Chen, Hasri Mustafa, Asna Abdullah Ataq
Institution: Universiti Putra Malaysia
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4407810613