Research on Green Transformation, Financing Constraints, and Corporate Performance

Abstract

As global concern for environmental protection and sustainable development <br/>continues to grow, green transformation has become an inevitable choice for enterprises seeking sustainable development and has also attracted considerable attention from academia, industry, and policymakers. In view of this, this study takes 37,114 listed companies on the Shanghai and Shenzhen stock exchanges as the research sample, and theoretically analyses and empirically examines the impact of green transformation on corporate performance and its mechanism. The empirical results show that green transformation is positively associated with corporate performance, and financing constraints play a mediating role in this relationship. After a series of robustness tests, the above conclusions remain valid. This study aims to explore ways to resolve the tension between enterprise development and environmental protection, help enterprises shift away from the traditional development model characterised by high energy consumption and high pollution, thereby improving corporate performance and enabling enterprises to identify the endogenous motivation for fulfilling environmental responsibility. Meanwhile, this study provides a new perspective for understanding the economic consequences of corporate green transformation and offers useful references for policymakers and corporate managers.