Research On The Relationship Between Green Credit Policy, Technological Innovation And Financial Performance Of Heavily Polluting Enterprise

In recent years,China’s economic construction has achieved remarkable results,but the environmental problems that come with it have also become increasingly prominent.As a large industrial country,the high energy consumption per unit of GDP of heavy industries has led to a series of environmental problems and has also restricted the sustainable development of China’s economy.Against the backdrop of high pollution and scarce resources,how to encourage energy-intensive industries to focus on "green production" has become an important issue for the sustainable development of China’s economy.The ultimate goal of sustainable development is of great significance to the development of China’s current green credit policy.Based on the above background,and in order to reconcile the link between environmental protection and economic development,this paper will explore the relationship between green credit policy,technological innovation and the financial performance of heavily polluting enterprises.Using data of heavily polluting A-share listed companies in Shanghai and Shenzhen from 2009-2021,this paper constructs a double difference(DID)model to confirm that green credit policies have a significant contribution to the long-term financial performance of enterprises.The results remain robust after a series of tests such as parallel trend test and propensity score matching.The results of further mechanism tests show that the implementation of green credit policies does have the effect of stimulating firms to engage in technological innovation,which in turn enhances the level of financial performance.Finally,heterogeneity analysis reveals that large-scale enterprises in regions with a developed level of marketisation improve their financial performance to a greater extent.Based on the quantitative study,Beixin Group Building Materials Co.,Ltd.was selected as a typical case study for this paper to analyse how Beixin Building Materials actively utilised internal and external resources for technological innovation and achieved steady improvement in corporate financial performance in the context of policy support.The results of the study show that:(1)green credit policies have a catalytic effect on technological innovation in heavily polluting enterprises.Although the policy may cause an increase in the financing costs of the heavily polluting enterprises at the initial stage,when the scale of the company expands to a certain level,this external pressure can be transformed into internal motivation,forcing the enterprises to carry out technological innovation,and then obtain part of the government subsidy,which effectively compensates the additional financing costs paid by the enterprises at the initial stage of the policy implementation,so that the enterprises will be more willing to carry out technological innovation.(2)Technological innovation plays an intermediary role in the process of green credit policies to improve the financial performance of enterprises.Whether it is energy-saving and environment-friendly technological transformation or new product development and innovation,it will ultimately improve the financial performance of enterprises by increasing capacity utilisation,controlling production costs,improving environmental performance or enhancing enterprise competitiveness.This study not only deepens the theoretical understanding of the mechanism between green credit policies and corporate financial performance,but also provides a reference for corporate business decisions at the practical level.