The Research On The Impact Of Green Reputation On Bank Performance

With the deterioration of the ecological environment,green development has gradually become a consensus.Banking industry contributes to green development mainly through implementing green credit.However,China's green credit market is still in its infancy.The high cost and risk of implementing green credit hinder the widespread development of green credit market because of its negative effect on bank performance.Fortunately,possibly benefiting from a high-level green reputation,a few banks have gained both social benefits and economic benefits.Simultaneously,the public plays an important role in the impact of green reputation on bank performance.Therefore,the study of the impact of green reputation on bank performance and the regulatory role of public attention to green development will help to tap the internal motivation of banks implementing green credit from the perspective of economic benefits,and to clarify the impact of the public on the motivation of banks implementing green credit so that help green development.Based on stakeholder theory,corporate reputation theory,resource-based theory,corporate social responsibility theory,environmental risk theory and other theories,this study analyses the mechanism of the interaction among green reputation,the public concern of green development,and bank performance.Taking the A-share listed banks in Shenzhen and Shanghai from 2011 to 2017 as samples,this study uses the system GMM method to regression dynamic panel model,and empirically tests the impact of green reputation on the short-term and the long-term performance of banks and the regulatory role of public green development attention on the basis of controlling endogeneity.The short-term comprehensive performance of banks is further divided into short-term profitability and short-term risk level.It is found that green reputation is negatively correlated with the short-term comprehensive performance and the short-term risk of banks,and positively correlated with the short-term profitability and long-term performance of banks.Previously,public attention to green development positively regulates the relationship between green reputation and the long-term performance but has no moderating effect on the relationship between green reputation and the short-term comprehensive performance,the short-term profitability,and the short-term risk.That is to say,although green reputation improves the short-term profitability of banks,it also increases the short-term risk of banks.Generally speaking,the green reputation of banks has a negative impact on the short-term comprehensive performance of banks.Nonetheless,the green reputation of banks is beneficial to bank performance in the long run.Increased public attention to green development will enhance the positive impact of green reputation on the long-term performance of banks,but will not affect the relationship between green reputation and the short-term profitability,the short-term risk and the short-term comprehensive performance of banks.Therefore,banks have the inherent motivation to implement green credit based on the consideration of economic performance,and the role of public supervision and guidance can strengthen the motivation of banks implementing green credit in the long run.And reducing the risk of green credit is a breakthrough to enhance the power of banks to implement green credit in the short term.The contribution of the study is to distinguish the short-term and the long-term performance of banks to study the impact of green reputation on bank performance,to analyze the mechanism of green reputation on bank performance from multiple perspectives,as well as to pay attention to and test the impact of the public on the dynamics of bank implementing green credit.The findings provide empirical evidence for banks to attach importance to green reputation and strengthen the risk management of green credit,for government to improve the green credit market system,and for all to help the public to enhance the dynamic of banks implementing green credit.