Abstract
Drawing on a panel dataset of 27,972 firm-year observations from Chinese A-share listed companies spanning 2009 to 2022, this study employs fixed-effects models to examine the nonlinear relationship between firm-level climate policy uncertainty (FCPU) and corporate green governance expenditure (GGE). The results reveal a robust inverted U-shaped pattern: moderate levels of FCPU encourage firms to increase GGE, while excessive uncertainty discourages it. Financing constraints mediate this relationship; specifically, FCPU exhibits a U-shaped impact on financing constraints, initially easing and then tightening them. Older top management teams accelerate the GGE downturn, while government environmental expenditure delays it, acting as a buffer. Heterogeneity analyses reveal the inverted U-shaped effect is more pronounced for non-polluting firms and state-owned enterprises (SOEs). This study highlights the complex dynamics of FCPU on corporate green behavior, underscoring the importance of climate policy stability and transparency for advancing corporate environmental engagement in China.
| Original language | English |
|---|---|
| Article number | 635 |
| Journal | Systems |
| Volume | 13 |
| Issue number | 8 |
| Early online date | 30 Jul 2025 |
| DOIs | |
| Publication status | Published - 31 Aug 2025 |
Data Availability Statement
The original contributions presented in this study are included in the article. Further inquiries can be directed to the corresponding author.Funding
This paper receives funding from the China Scholarship Council.
| Funders | Funder number |
|---|---|
| China Scholarship Council |
Keywords
- TMT characteristics
- climate policy uncertainty
- corporate green governance
- financing constraints
- inverted U-shaped relationship
ASJC Scopus subject areas
- Control and Systems Engineering
- Software
- Modelling and Simulation
- Computer Networks and Communications
- Information Systems and Management
