Can ESG performance sustainably reduce corporate financing constraints based on sustainability value proposition?
Under the pressure of global low-carbon transformation, the sustainable development initiative of the United Nations has gradually become an essential orientation of corporate Environmental, Social, and Governance (ESG) performance. Based on the integrated theo retical framework of sustainable devel...
| Autores: | , , , |
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| Formato: | artículo |
| Estado: | Versión publicada |
| Fecha de publicación: | 2025 |
| País: | España |
| Recursos: | Varias* (Consorci de Biblioteques Universitáries de Catalunya, Centre de Serveis Científics i Acadèmics de Catalunya) |
| Repositorio: | Recercat. Dipósit de la Recerca de Catalunya |
| OAI Identifier: | oai:dnet:recercat____::b83288dd680b39a19b6018e3c82cc136 |
| Acesso em linha: | http://hdl.handle.net/10256/28689 https://hdl.handle.net/10256/28689 |
| Access Level: | acceso abierto |
| Palavra-chave: | Economia ambiental -- Xina Finances -- Xina Objectius de desenvolupament sostenible Environmental economics -- China Sustainable Development Goals Finance -- China |
| Resumo: | Under the pressure of global low-carbon transformation, the sustainable development initiative of the United Nations has gradually become an essential orientation of corporate Environmental, Social, and Governance (ESG) performance. Based on the integrated theo retical framework of sustainable development finance, this work explores the relationships among corporate ESG performance, its financing constraints in China, and its influencing mechanism, as well as the role played by green innovation in this relationship. Using a comprehensive panel dataset of 1038 A-share listed companies from 2013 to 2023, totaling 11,418 observations, we find that corporate ESG performance and financing constraints ex hibit a significant negative relationship, indicating that strong corporate ESG performance can effectively alleviate corporate financing constraints. To address endogeneity concerns, we employ a systematic generalized method of moments (GMM) and a two-stage least squares regression using lagged instrumental variables. The results of the mechanism test showthat ESGperformance mitigates financing constraints by reducing perceived financial risks, improving information transparency, and increasing access to government green sub sidies. Furthermore, moderating effect analysis reveals that green innovation strengthens AcademicEditor: AliMeftahGerged Received: 15July2025 Revised: 17August2025 Accepted: 26August2025 Published: 28 August2025 Citation: Liao, Y.; Marquez,R.; Cheng,Z.;Li, Y. CanESGPerformance Sustainably ReduceCorporate Financing Constraints Basedon Sustainability Value Proposition? Sustainability 2025, 17, 7758. https://doi.org/10.3390/ su17177758 Copyright: ©2025bytheauthors. Licensee MDPI,Basel,Switzerland. This article is an open access article distributed under the termsand conditions of the Creative Commons Attribution (CC BY)license (https://creativecommons.org/ licenses/by/4.0/). the mitigating effect of corporate ESG performance on financing constraints in this process, based on SDG 9. Heterogeneity analysis reveals that this mitigating effect of corporate ESG performance on financing constraints is more pronounced for firms in China’s economi cally advanced eastern region, for companies facing harder budget constraints, and in the period following the implementation of the stringent new Environmental Protection Law. Distinguishing between genuine and symbolic corporate actions, we provide evidence that only substantive ESG improvements, as opposed to “greenwashing,” are rewarded by capital providers. The findings provide insights for the formulation of government policies and corporate sustainability strategies in emerging markets |
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