The Impact of ESG Performance on Corporate Financing under Sustainable Development

Chen Guan

doi:10.54691/gqvyvw07

Authors

Chen Guan

DOI:

https://doi.org/10.54691/gqvyvw07

Keywords:

ESG Performance; Financing Constraints; Green Development; Sustainable Development.

Abstract

Under the concept of sustainable development, green development has become the current trend of enterprise development. Financing is an indispensable step in the green development and transformation of enterprises. This article takes non-financial listed companies on the A-share market as the research object, using panel data from 2009 to 2021, and the KZ index as a proxy variable for financing constraints to study the impact of corporate ESG performance on financing constraints. The results indicate that good corporate ESG performance can effectively alleviate corporate financing constraints, and the results remain significant after a series of robustness tests; the heterogeneity results indicate that the inhibitory effect of ESG performance on financing constraints is more significant for non-state-owned enterprises, enterprises operating in heavily polluting industries, and enterprises located in the eastern region. Based on this conclusion, this study proposes targeted recommendations for different types of enterprises to alleviate financing constraints, which is of great significance for promoting green and sustainable development of enterprises.

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