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The challenges of maturity mismatch in investment and financing for sustainable development of carbon-intensive enterprises

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Abstract

To contribute to the research on the role of financial activities in corporate development, this study addresses the critical issue of short-term debt financing for long-term investment (SDFLI) and its impact on the sustainable development of carbon-intensive enterprises in China. By analyzing panel data from the A-share listed carbon-intensive enterprises in China spanning from 2010 to 2021, this study aims to shed light on the significance of this phenomenon and its implications. The empirical findings reveal the existence of a maturity mismatch between investment and financing in carbon-intensive enterprises, which exerts a significant negative impact on total factor productivity (TFP) and poses challenges to their sustainable development. Furthermore, the adverse effects of maturity mismatches vary across different types of enterprises based on factors such as ownership, industry characteristics, financing constraints, and internal controls. The results of the mediation effect model demonstrate that maturity mismatch hampers the sustainable development of carbon-intensive enterprises by reducing investment efficiency and increasing agency costs. Additionally, the moderating role of innovation in carbon-intensive enterprises between maturity mismatch and sustainable development is also examined. This research provides insights to establish policies for facilitating sustainable development in carbon-intensive enterprises.

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Authors and Affiliations

  1. Research Center of the Central China for Economic and Social Development, Nanchang University, Nanchang, 330031, China

    Huwei Wen

  2. School of Economics and Management, Nanchang University, Nanchang, 330031, China

    Huwei Wen & Lijun Jiang

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  1. Huwei Wen
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Huwei Wen: Resources, Methodology, Formal analysis, Writing—Review & Editing.

Lijun Jiang: Methodology, Formal analysis, Writing—Review & Editing, Corresponding author.

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Correspondence to Lijun Jiang.

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Appendix A

Appendix A

Table 12 Types of eight carbon-intensity industries
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Table 13 Descriptive statistics of related variables
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Wen, H., Jiang, L. The challenges of maturity mismatch in investment and financing for sustainable development of carbon-intensive enterprises. Environ Sci Pollut Res 30, 99541–99560 (2023). https://doi.org/10.1007/s11356-023-29445-1

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