Abstract: Under the background of carbon peak and carbon neutralization, this paper empirically finds that carbon abatement pressure of business groups positively affects their level of centralized liability with the data of Chinese A-share listed business groups in energy-intensive sector from 2008 to 2020. We further find that carbon abatement pressure affects centralized liability via the channel of financing constraints and operational risks. The positive relationship is more pronounced when business groups do not obtain the environment management system certification, receive more media attention, have centralized organizational structure, expose to an environment of poor financial marketization, operate in more competitive sectors or when the local governments pay more attention to carbon abatement. This paper expands the literature by exploring the institutional factors of debt distribution of business groups from the perspective of environmental regulation. It also sheds lights on how a business group can improve its efficiency of financial resource allocation.

Key words: carbon abatement, business group, debt distribution, energy-intensive sector, environmental regulation