Green bonds and enterprise investment–financing maturity mismatch: a study from the life cycle theory perspective

Reasonable investment and financing decisions are crucial to the sustainable development of enterprises. However, a mismatch in investment and financing maturity can trigger financial challenges and further exacerbate the business risks of enterprises. The present study focused on Chinese A-share listed companies in Shanghai and Shenzhen between 2016 and 2022. Additionally, the impact of enterprise green bond issuance on investment–financing maturity mismatch was explored by employing the multi-period difference-in-difference method (DID). The findings suggest that enterprise green bond issuance has the potential to reduce the level of investment–financing maturity mismatch within these enterprises. According to life-cycle analysis, this impact is notably pronounced among growth-period enterprises. Additional examination of mediation effects indicates that the issuance of green bonds alleviates the degree of investment–financing maturity mismatch in expanding enterprises by addressing the inefficient investment practices of managers. Notably, these inefficient practices are addressed by mitigating overinvestment rather than underinvestment. Overall, these study findings offer novel theoretical insights into green bonds and present empirical evidence that can enhance the practical implementation of the green bond system.