The　majority　of　research　examines　the　relationship　between　finance　and　the　environment　empirically,　but　they　lack　a　comprehensive　theoretical　framework.　To　shorten　this　gap,　we　develop　an　analytical　framework　dubbed　＂management　in　resource　constraint　settings＂　and　elucidate　the　theoretical　process　of　finance　constraints　influencing　environmental　performance.　We　explore　the　influence　of　finance　constraints　on　environmental　performance　of　China＇s　enterprises,　as　well　as　their　possible　mechanism,　using　financial　data　from　A-share　listed　companies　on　the　Shanghai　Stock　Exchange　from　2010　to　2019.　Our　findings　suggest　that　financial　constraints　can　drastically　reduce　China＇s　firms＇　environmental　performance,　and　that　green　management　is　a　viable　channel.　These　discoveries　are　crucial　for　China＇s　ecological　civilization　and　considerable　economy　to　develop　in　a　coordinated　manner.