IDEAS home Printed from https://ideas.repec.org/a/bla/acctfi/v64y2024i2p1637-1663.html

ESG, financial constraint and financing activities: A study in the Chinese market

Author

Listed:
  • Xuejing Guo
  • Shi Li
  • Xiaoping Song
  • Zilin Tang

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.

Suggested Citation

  • Xuejing Guo & Shi Li & Xiaoping Song & Zilin Tang, 2024. "ESG, financial constraint and financing activities: A study in the Chinese market," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 64(2), pages 1637-1663, June.
    • Handle: RePEc:bla:acctfi:v:64:y:2024:i:2:p:1637-1663
    DOI: 10.1111/acfi.13196
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/acfi.13196
    Download Restriction: no
    File URL: https://libkey.io/10.1111/acfi.13196?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Huang, Meiying & Cheng, Pengfei & Yuan, Yimeng, 2025. "Empowering corporate growth: How digital government enhances investment stability," Economic Analysis and Policy, Elsevier, vol. 87(C), pages 146-161.
    2. Shen, Lin & Zhang, Wen & Ma, Dan, 2025. "ESG practices and financing constraints of Chinese high-carbon enterprises under carbon reduction pressure: The role of credit financing and corporate reputation," Economic Modelling, Elsevier, vol. 152(C).
    3. Geng, Yini & Zheng, Zhiqiang & Yuan, Xuemei & Jiménez-Zarco, Ana Isabel, 2025. "ESG performance and total factor productivity of enterprises: the role of digitization," Research in International Business and Finance, Elsevier, vol. 77(PA).
    4. García-Meca, Emma & Martínez-Ferrero, Jennifer & Reverte, Carmelo, 2025. "The impact of European firms’ emissions reduction effectiveness on financial constraints: Evidence from the quintuple helix model perspective," Research in International Business and Finance, Elsevier, vol. 79(C).
    5. Yang Liu & Sameer Kumar & Huiqing Liu & Shun Li & Ziyun Zhou, 2025. "ESG performance, digital transformation, and green innovation," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-19, December.
    6. Nie, Song & Wang, Shihao & Ji, Qiang, 2025. "Break down data silos: Does public data openness improve corporate ESG performance?," International Review of Financial Analysis, Elsevier, vol. 106(C).
    7. Ma, Min & Zhang, Chengjun & Zhang, Rui, 2025. "The dynamic effects of evolution of ESG disclosure regimes on corporate financing constraints," International Review of Financial Analysis, Elsevier, vol. 107(C).
    8. Snarska, Małgorzata & Frydrych, Sylwia & Łukowski, Michał & Czech, Maria & Perez, Katarzyna, 2025. "Semiconductor game of thrones: A comprehensive study of geopolitical and equity market uncertainty transmission," International Review of Financial Analysis, Elsevier, vol. 106(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:acctfi:v:64:y:2024:i:2:p:1637-1663. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/aaanzea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.