AUTHOR=Zhang Wei , Liu Yun , Zhang Fengyun , Dou Huan 

TITLE=Green Credit Policy and Corporate Stock Price Crash Risk: Evidence From China

JOURNAL=Frontiers in Psychology

VOLUME=13

YEAR=2022

URL=https://www.frontiersin.org/journals/psychology/articles/10.3389/fpsyg.2022.891284

DOI=10.3389/fpsyg.2022.891284

ISSN=1664-1078

ABSTRACT=<p>Using the promulgation of <italic>Green Credit Guidelines</italic> in China as the research setting, this paper exploits a quasi-natural experiment to examine the impact of green credit policy on the stock price crash risk of heavy-polluting firms. The results show that green credit policy significantly increases the risk of stock price crash of heavy-polluting firms. Such impact is transmitted through increased financial constraints and reduced information transparency. In addition, we find that the impact of green credit policy on the stock price crash risk is more pronounced in firms with weak external governance and a small size. Our findings provide policy implications for mitigating corporate risks and promoting corporate sustainability.</p>