Using the context of the financial reform and the development of the non-state sector in China in the past decade, we examine the roles that the quality of information disclosure and property rights play in the allocation of different types of bank credit. We find that foreign banks and policy...

We find a strong and robust credit penalty effect on heavily-polluting firms of the 2012 'Green Credit Guidelines' (GCG) of China. Heavily polluting firms' access to both short-term and long-term bank credit reduces dramatically. We also find some evidence of a credit rewarding effect —...