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- Title
ESG, financial constraint and financing activities: A study in the Chinese market.
- Authors
Guo, Xuejing; Li, Shi; Song, Xiaoping; Tang, Zilin
- Abstract
This paper investigates the impact of Chinese firms' environmental, social, and governance (ESG) performance on their financial constraint and financing activities. We find a negative association between firms' ESG performance and their financial constraint driven by the Chinese government's commitment to tackling climate change. Compared with state‐owned enterprises (SOEs), non‐SOEs have alleviated their financial constraint through both equity and debt issuance, thanks to the stock price appreciation and green credit. High‐pollution firms benefit from both equity and debt issuance, while low‐pollution firms mainly finance through equity issuance. Our findings demonstrate the leading role of the Chinese government in its domestic capital markets.
- Subjects
CHINA; CHINA studies; CAPITAL market; FINANCIAL performance; GOVERNMENT business enterprises; DOMESTIC markets; CREDIT
- Publication
Accounting & Finance, 2024, Vol 64, Issue 2, p1637
- ISSN
0810-5391
- Publication type
Article
- DOI
10.1111/acfi.13196