Green credit and corporate ESG performance: Evidence from China

Using the data of Chinese a-share non-financial listed companies from 2010 to 2020, this paper conducts a natural experiment based on the implementation of the circular on the issuance of green credit guidelines, DID model was used to explore the impact of green credit on ESG performance and its mechanism. The results show that the implementation of green credit policy can significantly improve the ESG performance of enterprises. After parallel trend test and PSM-DID test, the results are still valid. Further analysis shows that green credit can improve ESG performance by promoting Enterprise Green technology innovation.