Catalyst or stumbling block: do green finance policies affect digital transformation of heavily polluting enterprises?

In recent years, China's green finance policies (GFP) have been successively introduced and continuously strengthened, and the effects have been widely observed. Using data from 2007 to 2021, this study employed a continuous double difference model to examine the impact of GFP on the digital transformation (DT) of heavily polluting enterprises (HPEs), as well as its underlying mechanisms. Our results show that GFP is a stumbling block rather than a catalyst that hinders the DT's enthusiasm of HPEs, and it plays an inhibitory role by increasing financing costs and financing constraints. Further analysis suggests that the GFP effect on HPEs exhibits asymmetry across regions and executive characteristics. HPEs in reform and innovation regions and with highly educated executive teams can mitigate the stumbling block effect. Our research offers fresh perspectives for enterprises to handle policy shocks, devise future development strategies, and establish a policy foundation for the advancement of green finance.

On the fast track: the benefits of ESG performance on the commercial credit financing.

Under the sustainability strategy, a company's ability to enhance its financing capacity through improvements in environmental, social, and governance (ESG) performance is crucial for fostering high-quality development. This study empirically examines the impact of corporate ESG performance on commercial credit financing (CCF) using data from China's A-share listed companies between 2009 and 2021. The findings of the panel regression analysis revealed a significant positive correlation between a company's ESG performance and CCF. Further analysis of the influencing mechanisms indicates that a company's ESG performance can increase its likelihood of obtaining CCF by reducing environmental, social, and governance risks. Specifically, we found that ESG performance facilitates access to CCF by promoting green innovation, enhancing social reputation, and mitigating operational risk. This study expands and enriches the theory of informal financing of enterprises while incorporating the more comprehensive assessment criteria for sustainable development.