The Impact of Corporate ESG Performance on the Cost of Debt Financing -- An Empirical Test Based on A-Share Listed Firms

With the transformation of China's economy from high-speed development to high-quality development, green development has become a basic requirement for high-quality economic development, and ESG has gradually become an important indicator for measuring corporate sustainable development. Based on the annual data of 1970 listed companies in Shanghai and Shenzhen A-shares from 2015-2022, this paper empirically examines the impact of firms' ESG performance on the cost of debt financing. The results show that companies with better ESG performance have lower debt financing costs. Further analysis shows that the impact of ESG performance on debt financing costs is more significant for non-state-owned enterprises.

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Publication Details

Journal
Highlights in Business Economics and Management
Published
2024-08-08
DOI
https://doi.org/10.54097/744yhk40
Citations
1
Primary Topic
Corporate Social Responsibility Reporting
Type
article
Field-Weighted Citation Impact
0.55
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article

The Impact of Corporate ESG Performance on the Cost of Debt Financing -- An Empirical Test Based on A-Share Listed Firms

Kexin Chen
1 citations
Highlights in Business Economics and Management
Corporate Social Responsibility Reporting
0.55
article

The Impact of Corporate ESG Performance on the Cost of Debt Financing -- An Empirical Test Based on A-Share Listed Firms

Kexin Chen
article en
1 citations

Abstract

With the transformation of China's economy from high-speed development to high-quality development, green development has become a basic requirement for high-quality economic development, and ESG has gradually become an important indicator for measuring corporate sustainable development. Based on the annual data of 1970 listed companies in Shanghai and Shenzhen A-shares from 2015-2022, this paper empirically examines the impact of firms' ESG performance on the cost of debt financing. The results show that companies with better ESG performance have lower debt financing costs. Further analysis shows that the impact of ESG performance on debt financing costs is more significant for non-state-owned enterprises.

Highlights in Business Economics and ManagementVol. 39
Sichuan Agricultural University (CN)
Industry, innovation and infrastructure
Openalex Percentile: Top 23%
Corporate Social Responsibility Reporting
0.55
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