Green Finance and Green Transformation: The Roles of Financing Constraints and Resource Allocation

Hongping Wu

doi:10.54097/ggf60r60

Authors

Hongping Wu

DOI:

https://doi.org/10.54097/ggf60r60

Keywords:

green finance; financing constraints; optimal resource allocation; green transformation.

Abstract

As China's economy moves to a high-quality development stage, promoting listed companies to achieve green transformation has become a key task to achieve sustainable development. As a bridge connecting financial capital and green industries, green finance not only strengthens the service function of the financial system to the ecological environment, but also gradually becomes an important driving force for the green transformation of enterprises. This paper systematically analyzes the driving path and mechanism of green finance on the green transformation of listed companies from the two perspectives of "financing constraint mechanism" and "resource optimization allocation". The study points out that the financing constraint mechanism imposes incentives and constraints on enterprises externally through financial instruments such as green credit and green bonds, guides capital to flow into the green field, and encourages enterprises to make green investments and environmental innovations. The resource optimization allocation mechanism realizes the inclination of resources to the direction of green innovation through the strategic reconstruction and flow adjustment of human, capital, technology and other resources within the enterprise, and promotes enterprises to deepen green transformation from an endogenous perspective. The two cooperate with each other in actual operation, forming a transformation path from "external promotion-internal response" to "internal and external linkage-coordinated upgrading", and jointly constructing a virtuous cycle mechanism for the green development of enterprises.

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