Does green governance affect financing constraints? Evidence from China’s heavily polluting enterprises

Given the increasing focus on global sustainable development, many enterprises in developing countries such as China participate green governance and scale up their investment; however, still experience financing difficulties. Our study investigates whether can mitigate corporate constraints. Using a sample of Chinese, A-share listed, high-pollution from 2013 to 2018, we find that practices, including environmental performance information disclosure, ease This effect is pronounced areas with high levels financial development for state-owned enterprises. paper not only proposes channel alleviating enterprises’ constraints but also reveals importance industrial transformation emissions reduction energy-intensive industries emerging markets.