Should banks invest into "green" companies? Empirical evidence from Europe

Banks’ investments into companies, either via crediting or holding shares, can be risky. On the other hand, green companies employing green practices and green innovations that
struggle for environmental sustainability, are often referred to
as safe investments. Based on the European companies deploying
classical least squares regression methodology, we evaluate the effect of “level of green” to companies financial performance. The results indicate that green companies are supposed to be safer investments
than non-green ones.