The impacts of environmental performance and development of financing decisions on economic sustainable performance: from the view of renewable and clean energy industry

Developing green economy and mitigating environmental pollution have strategically important role in China's commitments against global climate warming. An ongoing issue energy industry has been how to craft a financing structure which maximizes economic value under increasing environmental pressures. This study theorized that environmental management impacts on financing decisions by external effects and that the interaction between corporate environmental performance and external financing choices is associated with economic performance. It used the generalized method of moments estimation technique to analyze a sample of Chinese-listed clean and renewable energy companies during the period 2008-2018. The findings demonstrate that debt and equity financing composition have significant impacts on short- and long-term economic. The environmental performance has contributed to economic performance, which has increased to a great degree in the long run, but engendered negative effects in the short term. The empirical analyses provide that environmental governance moderates the relationship between external financing and economic performance. Graphic abstract