Can Fiscal and Financial Coordination Policies Enhance Corporate ESG Performance? A Quasi-Natural Experiment Based on China’s Green Loan Interest Subsidies Policy

Fiscal–financial policy coordination plays an important role in supporting environmental sustainability by directing financial resources toward green development. This study examines the impact of China’s Green Loan Interest Subsidy (GLIS) policy on corporate environmental, social, and governance (ESG) performance, using panel data on Chinese A-share listed firms from 2009 to 2023 and a difference-in-differences approach. The results show that the GLIS policy significantly improves corporate ESG performance, with an estimated increase of 0.084 points on a 1–9 ESG rating scale in the preferred specification. This finding remains robust across a series of robustness tests. Mechanism analysis indicates that the policy enhances ESG performance by promoting green technological innovation and alleviating financing constraints. Heterogeneity analysis further reveals that the positive effect is stronger among non-state-owned enterprises, non-heavy-polluting firms, and firms in regions with stricter environmental regulations. Overall, these findings highlight the role of fiscal–financial policy coordination in promoting corporate sustainability and offer policy implications for improving green finance frameworks and accelerating corporate green transformation.