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Top1. Introduction
One clear course of action is to address the climate change crisis by developing renewable energy. Economic growth and energy supply are inherently interconnected, with fossil fuels accounting for most global carbon emissions. The advancement of renewable energy can effectively transform the energy landscape, thereby mitigating carbon emissions (Bhat et al., 2022; Dirisu et al., 2023). While this pragmatic approach has garnered widespread consensus, securing adequate funding remains pivotal in driving industry progress.
While traditional financing theory can serve as an initial framework for analyzing renewable energy financing (Myers & Majluf, 1984), its manifestation has transformed. Information management has assumed an increasingly pivotal role in the financing management of renewable energy, serving as a crucial factor for companies seeking funding for their renewable energy projects. As per Refinitiv, global project financing reached 363.1 billion dollars in 2022, with the power industry accounting for 126.5 billion dollars1. For rapidly expanding renewable energy projects within the power sector, this underscores the significance of emphasizing business-oriented financing as a critical driver for their development.
The transformation lies in project finance, and the approach companies adopt to manage their renewable energy projects and attract external investment. On one hand, enterprises engaged in diversified business development often operate across multiple industries simultaneously, resulting in their product markets being intertwined with different industrial chains. Hence, the creditworthiness and collateral value considered by financiers are, to some extent, anchored in the enterprise's business (Hall, 2002; Shahzad et al., 2021). Moreover, China's policies, such as green credit, use the enterprise's business as a basis for loan approval (Su et al., 2023). On the other hand, the continuous evolution of financial markets and rapid information dissemination have led creditors and equity holders to focus not only on an enterprise's operational status but also consider the broader industry backdrop - particularly crucial for enterprises in highly anticipated sectors. The transformations within enterprises internally and externally deepen the direct connection between their financing constraints and core business activities; various factors tend to exert influence based on anchoring to these businesses.
Furthermore, utilizing information management technology is imperative for securing funding from the market for renewable energy projects. In traditional management theory, enterprises solely relied on specific attributes such as scale, age, and solvency to obtain financial support. However, due to its direct association with the climate change crisis, the renewable energy industry is influenced by a complex domestic and international backdrop that necessitates the application of information technology to analyze intricate financing factors(Ge et al., 2023). China is an exemplary case in the flourishing development of the renewable energy industry. It has emerged as a global leader in this sector and effectively managed government-market relations during industry expansion. Consequently, comprehending China's progress in renewable energy relies on leveraging information management technology.
Building upon the theoretical and practical foundations, we explore the relationship between renewable energy businesses and financing constraints of Chinese listed companies as a benchmark. Within this framework, we examine to what extent the development of renewable energy businesses through different channels can alleviate financial constraints. Furthermore, we explore how industry-specific factors and general background conditions impact this relationship from three aspects of information: international context, domestic conditions, and enterprise characteristics.