Green Investor Shareholding and Financial Distress Risk of Manufacturing Companies: Exacerbate or Mitigate?

Accelerating the promotion of green economic development relies on the infusion of green capital. In this context, can the green investor (GI) serve as a 'stabilizer' for the green transformation and development of manufacturing companies? This article empirically examines the impact of green investor shareholding (GIS) on financial distress risk (FDR) by constructing a refined measure that better captures the FDR of manufacturing companies. The research findings indicate that: (1) GIS can significantly mitigate the FDR of manufacturing companies; (2) two possible channels are the enhanced levels of green governance performance and alleviation of financing constraints; (3) from the institutional logic perspective, the strength of shareholder protection enhances the role of GIS in mitigating FDR, while the intensity of environmental regulation exhibits a U-shaped moderating effect, initially suppressing it and subsequently promoting it. Furthermore, we explore long-term, multifaceted impact of GIS, highlighting their broader implications for corporate sustainable development. JEL classification G23, G23, Q56