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Fintech, carbon emissions, and divergence in corporate ESG ratings

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  • Gao, Ming
  • Liang, Kaipeng

Abstract

Based on panel data from A-share listed companies in China from 2009 to 2023, this study examines the impact and underlying mechanisms of fintech and carbon emissions on corporate Environmental, Social, and Governance (ESG) rating divergence. The findings indicate that fintech can effectively reduce ESG rating divergence among firms, whereas carbon emissions tend to exacerbate such divergence. Furthermore, fintech plays a significant moderating role in the process by which carbon emissions influence ESG rating divergence. There exists marked heterogeneity in the impact of fintech on ESG rating divergence between high-tech and non-high-tech enterprises. Similarly, the effect of carbon emissions on ESG rating divergence differs significantly between heavily polluting and non-heavily polluting firms.

Suggested Citation

  • Gao, Ming & Liang, Kaipeng, 2025. "Fintech, carbon emissions, and divergence in corporate ESG ratings," Finance Research Letters, Elsevier, vol. 86(PF).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pf:s1544612325018963
    DOI: 10.1016/j.frl.2025.108642
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    References listed on IDEAS

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