Enterprise Poverty Alleviation and Disagreements between Chinese and Foreign ESG Ratings

Corporate poverty alleviation is an important manifestation of corporate social responsibility. However, there is currently a lack of research on the impact of corporate poverty alleviation on the disagreements between Chinese and foreign ESG ratings. Through empirical analysis, this paper finds that corporate which participate in poverty alleviation will reduce the differences in ESG ratings between domestic and international agencies. Further research reveals that corporate involvement in poverty alleviation can significantly improve information transparency and reduce financing constraints, thereby reducing the divergence of ESG ratings. In addition, state-owned enterprises and enterprises with high-quality information disclosure that participate in poverty alleviation will more significantly reduce the disagreements. The study offers compelling evidence that China should support the globalization of disclosure regulations and develop an ESG assessment framework that considers both globalization and regional differences.