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ESG disclosure and financing constraints: Evidence from Chinese listed firms

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  • Xie, Liufang
  • Peng, Zhengbo
  • Tong, Xiaoge
  • Zhou, Wenjun

Abstract

Environmental, Social, and Governance (ESG) disclosure, as a vital complement to traditional financial reporting, has attracted increasing attention from investors and regulators. While prior studies largely focus on the relationship between ESG performance and firm value, the specific role of ESG disclosure in alleviating financing constraints remains underexplored. Using panel data of Chinese A-share listed firms from 2010 to 2023, this study investigates the impact of ESG disclosure on financing constraints. The findings reveal that ESG disclosure significantly alleviates financing constraints, with the effect being more pronounced among non-state-owned enterprises (non-SOEs) and firms with high financial reporting credibility. Mechanism tests indicate that this alleviating effect is driven by the synergistic enhancement of green innovation capability and green information transparency. Further analysis shows that the impact of ESG disclosure is amplified by the implementation of green credit policies and greater local government attention to environmental issues. This study provides novel evidence on how proactive ESG disclosure optimizes capital access and fosters corporate sustainability.

Suggested Citation

  • Xie, Liufang & Peng, Zhengbo & Tong, Xiaoge & Zhou, Wenjun, 2026. "ESG disclosure and financing constraints: Evidence from Chinese listed firms," Economic Analysis and Policy, Elsevier, vol. 89(C), pages 742-756.
    • Handle: RePEc:eee:ecanpo:v:89:y:2026:i:c:p:742-756
    DOI: 10.1016/j.eap.2025.12.040
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