ABSTRACT
Built upon an analysis of 2858 publicly listed companies in China, we found that although polluting companies historically received more loans from banks than nonpolluting companies, this trend has recently changed in China. Polluting companies receive fewer loans from banks and the borrowing cost increases over time. This suggests that the Chinese banking industry is becoming more environmentally responsible in its loan decision-making.
Disclosure statement
No potential conflict of interest was reported by the authors.