Controlling Shareholders’ Equity Pledges, Environmental Regulations and Corporate Green Performance—Based on Data from Listed Companies in Highly Polluting Industries

The proposal of “Carbon Neutral” in the 14th Five-Year Plan highlights China’s deep involvement in global environmental governance and re-emphasises the importance of green and low-carbon transformation in the new development pattern. As an emerging financial product, equity pledge not only provides sufficient cash flow, but also provides a convenient new channel for commercial loans supported by the financial market. Therefore, the ways in which controlling shareholders choose equity pledge are increasing. But actually, as a common financing practice for controlling shareholders in China, equity pledging has increased the risks borne by enterprises while providing financing facilities for shareholders. This study uses the Tobit model to investigate the impact of controlling shareholders’ equity pledges on corporate green innovation, to investigate the mediating and regulating effects, to explore the role of internal corporate governance and external environmental regulation in the impact mechanism. This study will provide a new perspective on the economic consequences of shareholders’ equity pledging behaviour and provide new ideas for promoting the green development of highly polluting enterprises.