Does carbon risk affect the maturity mismatch of corporate investment and financing? Empirical evidence from the Chinese market

This study examines how carbon risk affects the maturity mismatch of corporate investment and financing. Using China’s low-carbon city pilot policy as a quasi-natural experiment, we employ a staggered difference-in-differences (DID) approach on a sample of Chinese A-share listed firms from 2007 to 2022. We find that carbon risk significantly exacerbates this maturity mismatch, while external monitoring negatively moderates this relationship. Mechanism tests reveal that increased carbon risk exacerbates corporate financing constraints and promotes green innovation, thereby worsening the maturity mismatch. Further analysis indicates that the effect of carbon risk on maturity mismatch is more pronounced in non-state-owned enterprises, regions with lower marketization, and firms adopting an aggressive corporate strategy. This study elucidates the mechanisms through which carbon risk affects corporate investment-financing maturity mismatch, offering theoretical insights for refining carbon emission reduction policies and supporting measures in China and beyond, as well as practical guidance for firms in managing investment-financing maturity alignment.