China green credit policy and corporate green technology innovation: from the perspective of performance gap

Green credit policy is an essential external driver of green transformation for companies, while the performance gap is a vital decision-making foundation for innovative reform for managers. Both work together and influence corporate green technology innovation. Based on this, this research examines the influence of green credit on corporate green technology innovation under the assumptions of “cost compliance” and “innovation compensation” from the perspective of the performance gap. It shows that green credit policy inhibits green technology innovation among heavy polluting firms. Still, after considering the performance gap, the inhibiting effects are only found in firms with performance deficits. In contrast, green credit policy promotes green technology innovation when firms have a performance surplus. The heterogeneity analysis finds that the boosting effect of performance surplus is more significant in non-state, large-scale, and financially developed regions.