Board Decision-making Logic, Equity Nature, and Bank Environmental Lending

Abstract

This article explores the impact of bank governance on bank environmental lending, using a manually collected sample of China’s city commercial banks from 2008 to 2018. The empirical results show that government ownership can promote bank environmental lending and a board of directors with a preference for social logic can positively moderate the relationship between them. In addition, the positive moderating effect is more pronounced in banks with state-owned shareholders as the largest shareholder and banks located in provincial capital cities. This paper is beneficial for expanding the understanding of the interaction between equity nature and board decision-making process in bank governance.