Work

Is firms’ low-carbon transition conducive to improving maturity mismatch of investment and financing?

Year: 2025

Type: article

Abstract: Transitioning to a low-carbon economy is an effective approach to tackling the climate crisis, and offers a referable strategy for realizing the coordination of development and security. This study demonstrates a robust negative relationship between firms’ low-carbon transition and investment-financing maturity mismatch. Crucially, this relationship is stronger for non-state-owned and asset heavy firms, and firms located in cities with strict environmental regulation and higher administrative levels. Next, improving asset utilization efficiency, strengthening long-term financing capabilities, and attracting external attention are reasonable channels for mitigating the mismatch. In addition, the low-carbon transition has within-industry and backward supply-chain spillover effects, and can reduce the bankruptcy risk and resource allocation efficiency loss caused by the maturity mismatch. Our findings provide valuable theoretical insights and practical foundations for promoting the low-carbon transition and addressing the risk of maturity mismatch to maintain financial security.

Source: Borsa Istanbul Review

DOI: 10.1016/j.bir.2025.10.022

Authors: Hao Shu, Wenhui Qi, Taiyun Zhou

Institution: Anhui Agricultural University

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Climate action, Industry, innovation and infrastructure, Decent work and economic growth

Open Access status: gold

Estimated APC paid: $1,500