ESG Rating Divergence and Financing Constraints

The ESG ratings provided by ESG rating agencies become an significant reference for decision-making by investors or creditors. However, the ESG rating divergence not only brings noise to the capital market but also exacerbates corporate financing constraints. The article takes Chinese A-share listed companies from 2015 to 2022 as the sample and uses the fixed effects model to empirically test the impact of ESG rating divergence on corporate financing constraints. The study finds that: ESG rating divergence increases corporate financing constraints. Further research reveals that: ESG rating divergence intensifies market information asymmetry and business operating risks, thereby increasing corporate financing constraints; in non-state-owned enterprises and enterprises with high-quality accounting information disclosure, it exacerbates the impact of ESG rating divergence on financing constraints. This study provides evidence for regulating the construction of the ESG rating system and reducing corporate financing constraints.