Green Credit Policy, Analyst Attention, and Corporate Green Innovation

As global sustainability goals gain importance, fostering green innovation has become critical for businesses to reduce environmental impact and enhance sustainability. Green credit policies, which incentivize firms to adopt eco-friendly practices, are a powerful tool in encouraging green innovation. This study examines the impact of green credit policies on corporate green innovation in China, with a focus on high-pollution enterprises, using data from A-share listed companies from 2007 to 2023. The research highlights the significant role of analyst attention in moderating the effectiveness of these policies. The findings show that while green credit policies significantly promote the quantity and quality of green innovation, the impact is further amplified when firms receive higher levels of attention from analysts. The study also finds that larger firms and those with excess cash are more likely to respond positively to green credit policies, as they have the resources to invest in green technologies. This research provides valuable insights into the relationship between green credit policies, corporate green innovation, and the moderating effect of analyst attention, offering practical recommendations for policymakers and businesses aiming to achieve sustainable development goals.