【Topic】
Green financing and politicians' incentives: Evidence from proprietary loan assessment data
【Host】
Prof. YU Lisheng, Associate Dean, School of Management, Xiamen University
【Abstract】
We examine the role of local politicians’ incentives on bank's green loan decisions by obtaining a proprietary internal branch-loan level dataset on the borrowers’ environmental risk ratings from one of the largest banks in China. We first find that the bank's environmental risk ratings of its borrowers reflect the real environmental risks that the borrowers face and that the bank prices the oans accordingly. Then, we find that the individual branch's consideration of the borrowers environmental risk ratings weakens when city government leaders have political incentives to enhance local macroeconomic growth. Overall, we highlight that green financing initiatives are compromised and influenced by local officials’ political incentives.
【Speaker】
Professor Yang, George Yong
Director, School of Accountancy
Outstanding Fellow of the Faculty of Business Administration
Prof. George Yong Yang is a Professor of School of Accountancy at The Chinese University of Hong Kong (CUHK). He obtained his BA and MA degrees from Peking University and PhD degree from Kellogg School of Management of Northwestern University and is a Certified Public Accountant (non-practicing) of China (CICPA).
Prof. Yang has published research articles in journals such as The Accounting Review, Management Science, and Review of Accounting Studies and has been on the editorial board of The Accounting Review since 2016. Prof. Yang has broad research interests related to various accounting and finance issues driven by agents’ economic incentives. He is particularly interested in topics on corporate governance, information disclosure, financial analysts, and insider trading.
Teaching Areas
Managerial Accounting
Corporate Governance
Management Control Systems
Research Interests
Information Disclosure
Financial Analysts
Corporate Social Responsibility
Insider Trading
Corporate Governance
