Asset structure mismatch and corporate carbon risk

With the implementation of the dual-carbon strategy, carbon risk has emerged as a critical consideration for corporate operations. Compounding this, the persistent and growing asset structure mismatch presents a significant threat to corporate sustainability. This study empirically examines the impact of asset structure mismatch on corporate carbon risk based on data from Chinese A-share listed firms from 2010 to 2021. The research indicates that asset structure mismatch exacerbates corporate carbon risk. Mechanism analysis demonstrates that asset structure mismatch elevates corporate carbon risk by impeding technological innovation, compromising internal control quality and operational efficiency, and worsening financing constraints. Heterogeneity analysis shows that the impact of asset structure mismatch on carbon risk is more pronounced in central and western regions, heavily polluted industries, highly competitive industries, and firms with low media attention. This paper provides empirical insights for promoting firms to rationally allocate their assets to reduce carbon risk.