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Green innovation and maturity mismatch: Evidence from China

Author

Listed:
  • Zhang, Liqin
  • Sun, Xiao
  • Guo, Wei
  • Sun, Ruiqi

Abstract

Green innovation is essential for sustainable development but poses new challenges for financial management, especially in aligning investment and financing horizons. While extant studies focus on its environmental and operational benefits, its financial impact remains underexplored. Using data from Chinese listed firms from 2007 to 2023, we study the effect of green innovation on debt maturity mismatch. We find that green innovation exacerbates maturity mismatch by altering investment and financing structures, increasing risk, and heightening return uncertainty. The effect is stronger in firms reliant on bank debt and in competitive industries. These findings reveal a hidden financial risk of green innovation and offer insights for designing supportive financial policies.

Suggested Citation

  • Zhang, Liqin & Sun, Xiao & Guo, Wei & Sun, Ruiqi, 2025. "Green innovation and maturity mismatch: Evidence from China," Finance Research Letters, Elsevier, vol. 85(PC).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pc:s1544612325013790
    DOI: 10.1016/j.frl.2025.108124
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    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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