scholarly journals Green Credit Policy and Maturity Mismatch Risk in Polluting and Non-Polluting Companies

2021 ◽  
Vol 13 (7) ◽  
pp. 3615
Author(s):  
Yaowei Cao ◽  
Youtang Zhang ◽  
Liu Yang ◽  
Rita Yi Man Li ◽  
M. James C. Crabbe
Keyword(s):  
Environmental Protection ◽  
Bank Credit ◽  
Credit Policy ◽  
Short Term ◽  
Coordinated Development ◽  
Difference In Differences ◽  
Sustainable Operations ◽  
Maturity Mismatch ◽  
Investment And Financing ◽  
The Impact

A major issue is whether the implementation of China’s green credit policy will affect the coordinated development of corporate sustainable operations and environmental protection. This paper used a propensity score matching—difference-in-differences (PSM-DID) model to analyse the impact of China’s green credit policy implemented in 2012 on the maturity mismatch risk between investment and financing in polluting and non-polluting companies. We found that: (1) green credit policies can help reduce the risk of maturity mismatch between investment and financing for polluting companies; (2) the reduction of short-term bank credit is the main way to curb the risk of maturity mismatch risk between investment and financing; (3) the green credit policy has no obvious mitigation effect on the risk of maturity mismatch between investment and financing among polluting companies with environmental protection investment; (4) the mitigation effect of the green credit policy on the maturity mismatch risk is more significant in state-owned polluting companies and polluting companies in areas with a lower level of financial development. The empirical results show that China’s green credit policy helps stimulate the environmental protection behaviour of companies, as well as helping alleviate the capital chain risk caused by the maturity mismatch between investment and financing. In addition, despite the effect of heterogeneity, it can solve the contradiction between environmental protection and economic development.

scholarly journals Corporate Social Responsibility and Maturity Mismatch of Investment and Financing: Evidence from Polluting and Non-Polluting Companies

2020 ◽  
Vol 12 (12) ◽  
pp. 4972
Author(s):  
Xiaolan Bao ◽  
Qiaosheng Luo ◽  
Sicheng Li ◽  
M. James C. Crabbe ◽  
XiaoGuang Yue
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Mandatory Disclosure ◽  
Short Term ◽  
Maturity Mismatch ◽  
Ecological Development ◽  
Investment And Financing ◽  
Corporate Social ◽  
The Impact

We investigate the influence of corporate social responsibility (CSR) on the maturity mismatch of investment and financing from the perspective of both polluting and non-polluting companies. The results reveal that CSR performance can aggravate the maturity mismatch of investment and financing; and the effect can be more serious in the polluting companies. At the same time, we find that CSR makes companies obtain more short-term debt. What is more, polluting companies perform more environmental responsibilities in the form of long-term investments than non-polluting companies. These phenomena exacerbate the maturity mismatch of investment and financing; and this effect is only significant when polluting companies choose CSR mandatory disclosure. The impact of CSR on the maturity mismatch of investment and financing is more apparent in companies with lower value and at smaller scales. We show that companies should not only perform their CSR to maintain a balanced economic and ecological development, but also pay attention to the aggravation of the maturity mismatch of investment and financing.

GST Pass-through Across Indian Sates: Evidence from Difference-in-Differences

2018 ◽  
Vol 66 (1-2) ◽  
pp. 42-49
Author(s):  
Debashree Das
Keyword(s):  
Ordinary Least Squares ◽  
Rate Of Change ◽  
Control Group ◽  
Short Term ◽  
Difference In Differences ◽  
Data Set ◽  
Consumer Prices ◽  
Pass Through ◽  
The Impact ◽  
Special Category

This article analyses whether there exists any short-term inflationary pressure on Indian economy post Goods and Services Tax (GST) implementation. It was found that the introduction of GST showed no significant effect on the rate of change of consumer price index (CPI). Though, the effect of the GST implementation on consumer prices in India showed no significant change in the short term, the impact needs to monitored and observed for the long term, because the current state of economic conditions may have led to a delayed pass-through of the GST increase into consumer prices. To estimate the pass-through effect on prices due to GST implementation from 1 July 2017, various graphical and statistical methods are used to ascertain whether there has been any significant pass-through of GST on CPI– ordinary least squares (OLS) regression, and difference-in differences (DID) estimation technique has been used. The impact of post- and pre-implementation of GST has been analysed through DID by segregating the data set on the basis of treatment and control groups. The non-special category states have been taken as the treatment group and remaining special category states as control group. The results indicate that there is no significant evidence of upward bias in the CPI post GST implementation; these conventional estimates hold true for all states that were segmented based on revenue distribution and contribution to gross domestic product (GDP). JEL: D78, H20, H22

scholarly journals Research on the relationship between China’s carbon emission, economic growth and the development of new energy industry

2021 ◽  
Vol 248 ◽  
pp. 02040
Author(s):  
Huimei Chen ◽  
Yingchun Wang ◽  
Haifeng Kang
Keyword(s):  
Economic Growth ◽  
Environmental Protection ◽  
Carbon Emissions ◽  
Energy Development ◽  
Energy Industry ◽  
Coordinated Development ◽  
Fossil Energy ◽  
New Energy ◽  
The Impact ◽  
The Relationship

In view of the current domestic new economic form, under the trend of sustainable development, new energy industry has become a rising star. The development of new energy can improve the environment destroyed by the development of fossil energy to a certain extent. It is the primary task of environmental protection and energy development to study the specific relationship between China’s current carbon emissions, economic growth and the development of new energy industry. Based on STR model, we can empirically study the impact of carbon emissions on the development of new energy industry, analyze the nonlinear relationship, and propose relevant strategies to promote the development of new energy industry and pay attention to the coordinated development of energy consumption and environmental protection.

scholarly journals The Impact of Scarcity on Pro-environmental Behavior in the COVID-19 Pandemic

2021 ◽  
Vol 3 ◽  
Author(s):  
Sonya Sachdeva ◽  
James Shyan-Tau Wu ◽  
Jiaying Zhao
Keyword(s):  
Environmental Protection ◽  
Environmental Degradation ◽  
Environmental Behavior ◽  
Short Term ◽  
Human Needs ◽  
The World ◽  
The Impact ◽  
Willingness To Engage

As the world contends with the far-ranging impacts of the COVID-19 pandemic, ongoing environmental crises have, to some extent, been neglected during the pandemic. One reason behind this shift in priorities is the scarcity mindset triggered by the pandemic. Scarcity is the feeling of having less than what is necessary, and it causes people to prioritize immediate short-term needs over long-term ones. Scarcity experienced in the pandemic can reduce the willingness to engage in pro-environmental behavior, leading to environmental degradation that increases the chance of future pandemics. To protect pro-environmental behavior, we argue that it should not be viewed as value-laden and effortful, but rather reconceptualized as actions that address a multitude of human needs including pragmatic actions that conserve resources especially during scarcity. To bolster environmental protection, systematic changes are needed to make pro-environmental behavior better integrated into people's lives, communities, and cities, such that it is more accessible, less costly, and more resilient to future disturbances.

Are Donations Bigger in Texas? Analyzing the Impact of a Policy to Match Donations to Texas’ Emerging Research Universities

2020 ◽  
pp. 000283122096894
Author(s):  
Xiaodan Hu ◽  
Frank Fernandez ◽  
Denisa Gándara
Keyword(s):  
Research Universities ◽  
Public Investment ◽  
Social Consequences ◽  
Short Term ◽  
Difference In Differences ◽  
Incentive Program ◽  
Incentive Policies ◽  
Private Donations ◽  
The Impact

We examine the impact of the Texas Research Incentive Program (TRIP), a state policy that offers matching funds to incentivize private-sector donations to certain public universities. We use a national dataset and employ a generalized difference-in-differences approach with matching procedures to estimate the treatment effect of TRIP on revenues at eligible institutions. Results show that TRIP is associated with increases in revenue from private gifts and state grants/contracts, which suggests that policymakers can leverage public investment to incentivize private donations. We do not detect a statistically significant relationship between TRIP and endowments, so donations are likely used for short-term funding and do not create long-term dividends. We consider potential social consequences of selecting certain universities to benefit from incentive policies.

Anti-Mafia Law Enforcement and Lending in Mafia Lands. Evidence from Judicial Administration in Italy

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Francesca M. Calamunci ◽  
Marco Alberto De Benedetto ◽  
Damiano Bruno Silipo
Keyword(s):  
Law Enforcement ◽  
Preventive Measure ◽  
Bank Credit ◽  
Difference In Differences ◽  
Firm Level ◽  
Negative Change ◽  
Criminal Organizations ◽  
Italian Regions ◽  
Judicial Administration ◽  
The Impact

Abstract The paper analyses the impact of a preventive measure aimed at fighting the criminal organizations’ activities on the bank-firm relationship in the four Italian regions with the highest density of mafia over the period 2004–2016. Taking advantage of the staggered firm-level anti-mafia enforcement actions, we implement a difference-in-differences approach and find that after entering judicial administration mafia-infiltrated firms experience a 19 per cent contraction of bank credit and have a higher probability of being credit rationed than a matched sample of legal companies. We also find that firms confiscated from the mafia experience a negative change in some demand-driven (value of production) and supply-driven (profitability) determinants of loans. Finally, we study whether confiscation of infiltrated firms produces externalities on non-infiltrated companies, and show that banks do not reassess the overall credit risk in local markets.

scholarly journals On the Nonlinear Relationship between Bank Financing and Firm Performance: A PSTR Model for Tunisian Companies

2017 ◽  
Vol 7 (2) ◽  
pp. 521
Author(s):  
Abdelaziz Hakimi
Keyword(s):  
Firm Performance ◽  
Bank Lending ◽  
Bank Credit ◽  
Smooth Transition ◽  
Optimal Threshold ◽  
Short Term ◽  
Macroeconomic Factors ◽  
Smooth Transition Regression ◽  
The Impact

Despite that bank lending and firm performance relationship has been strongly explored, to date there are few studies that investigated the threshold of credit that affects firm performance. The aim of this paper is twofold. First, it seeks the optimal threshold of short-term and long-term credits that affects firm performance. Second, it investigates the impact of bank credit of firm performance. To achieve these goals, we used a sample of 36 Tunisian listed companies over the period 2008-2015 and we performed the Panel Smooth Transition Regression (PSTR) as econometric approach. Empirical results indicate that Tunisian firms require more short-term credits than long-term loans based on the optimal threshold. With regard to the impact of bank credit, findings indicate that this effect differs from short-term to long-term credit. We found that firm performance was significantly and positively correlated with short-term credit. However, long-term credit decreases significantly the performance of Tunisian companies. For macroeconomic factors, results show that GDPG increases significantly firm performance; however inflation acts negatively and significantly.

Do working capital management practices influence investment and financing patterns of firms?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahsan Akbar ◽  
Xinfeng Jiang ◽  
Minhas Akbar
Keyword(s):  
Capital Structure ◽  
Negative Relationship ◽  
Capital Management ◽  
Working Capital ◽  
Short Term ◽  
Working Capital Management ◽  
Content Type ◽  
Investment And Financing ◽  
The Impact

PurposeThe present study aims to investigate the impact of working capital management (WCM) practices on the investment and financing patterns of listed nonfinancial companies in Pakistan for a span of 10 years.Design/methodology/approachThe study is based on secondary financial data of 354 listed nonfinancial Pakistani firms during the period of 2005–2014. The two-step generalized method of moment (GMM) regression estimation technique is employed to ensure the robustness of results.FindingsEmpirical testing reveals that: excessive funds tied up in working capital have a negative impact on the investment portfolio of sample firms. Besides, a negative relationship between change in fixed assets and excess net working capital posits that, eventually, firms use idle resources tied up in short-lived assets to boost their investment activities. Furthermore, larger working capital levels were associated with higher leverage ratio which indicates that firms with inefficient WCM policies have to rely heavily on long-term debt to meet their short-term financing requirements. Additional results indicate that firms that take more time to sell inventory and convert receivables to cash, make more use of debt. Results of cash management models illustrate that cash-rich firms have lower leverage levels which signal the strong financial health and internal revenue generation capability of such firms.Originality/valueThere is a dearth of empirical studies that examine the implications of WCM decisions on a firm's capital structure. Besides, these studies are only confined to how a WCM policy influences the long-term investment activities of a firm. The research contributes to the extant literature by empirically revealing a link between the WCM practices and the firm's long-range investment and financing patterns. Hence, financial managers shall account for the impact of their short-term financial management decisions on the capital structure of the firm.

Liquidity versus Wealth in Household Debt Obligations: Evidence from Housing Policy in the Great Recession

2020 ◽  
Vol 110 (10) ◽  
pp. 3100-3138 ◽  
Author(s):  
Peter Ganong ◽  
Pascal Noel
Keyword(s):  
Housing Policy ◽  
Great Recession ◽  
Regression Discontinuity ◽  
Short Term ◽  
Difference In Differences ◽  
The Great Recession ◽  
Consumption Decisions ◽  
Research Designs ◽  
The Impact

We exploit variation in mortgage modifications to disentangle the impact of reducing long-term obligations with no change in short-term payments (“wealth”), and reducing short-term payments with no change in long-term obligations (“liquidity”). Using regression discontinuity and difference-in-differences research designs with administrative data measuring default and consumption, we find that principal reductions that increase wealth without affecting liquidity have no effect, while maturity extensions that increase only liquidity have large effects. This suggests that liquidity drives default and consumption decisions for borrowers in our sample and that distressed debt restructurings can be redesigned with substantial gains to borrowers, lenders, and taxpayers. (JEL E21, G21, G51, R38)

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