Relationship among regulatory environment, financing constraints, and corporate risk-taking in tourism industry

• Environmental regulation boosts risk-taking in tourism industry listed firms. • Financing constraints reduce risk-taking ability in tourism industry listed firms. • Environmental regulation has a threshold effect on risk-taking, shaped by financing constraints. • Market competition significantly moderates environmental regulation's impact on risk-taking. Using 2009–2022 data obtained from listed Chinese companies belonging to the tourism industry, this aims to understand the interplay among environmental regulation, financing constraints, and corporate risk-taking. Findings indicate that financing constraints hinder corporate risk-taking, whereas environmental regulation positively promotes it; however, the degree of market competition exacerbates such a positive effect. Environmental regulation exhibits a threshold effect with varying financing constraints. This research provides theoretical insights and practical implications for policymakers and tourism firms to navigate complex markets and foster green and sustainable tourism development.