Green Finance and Corporate Green Innovation: Evidence from the Equator Principles

38 Pages Posted: 27 Dec 2022

See all articles by Jia Xu

Jia Xu

Central China Normal University; Central China Normal University

Shu Zeng

Zhongnan University of Economics and Law, School of Accounting

Jingbo Cui

Duke Kunshan University

Multiple version iconThere are 2 versions of this paper

Date Written: December 22, 2022

Abstract

Green financing policy plays a critical role in fighting against climate change by providing financial support to corporate’s green transition. Through the lens of the Equator Principles, adopted by financial institutions for managing environmental and social risks in funding projects, this paper examines whether green loans facilitate the innovation direction of corporate toward environmentally friendly technologies. We find that green loans are associated with higher ratios of environmental patents in total patents for firms in the pollution-intensive sectors than those in the non-pollution-intensive sectors. We also document the pivoting governance role of analysts’ attention and gender diversity in board members in pushing corporates with green loans to transit in a sustainable mode.

Keywords: Environmental Innovation, Patent, Green Finance, Corporate Social Responsibility

JEL Classification: G23, G30, M14, O30

Suggested Citation

Xu, Jia and Xu, Jia and Zeng, Shu and Cui, Jingbo, Green Finance and Corporate Green Innovation: Evidence from the Equator Principles (December 22, 2022). Available at SSRN: https://ssrn.com/abstract=4309159 or http://dx.doi.org/10.2139/ssrn.4309159

Jia Xu

Central China Normal University ( email )

Wuhan
China

Central China Normal University ( email )

NO.152 Luoyu Road
Wuhan Hubei P. R.
Wuhan, 430000
China

Shu Zeng

Zhongnan University of Economics and Law, School of Accounting ( email )

182# Nanhu Avenue
Wuhan, 430073
China

Jingbo Cui (Contact Author)

Duke Kunshan University ( email )

No. 8 Duke Avenue
Kunshan, Jiangsu 215316
China

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