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Does ESG rating divergence decrease enterprise productivity? Evidence from China

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  • Tu, Qiang
  • Zuo, Limei
  • Liang, Anran
  • Yao, Ye
  • Liu, Diyi

Abstract

This study explores the impact of ESG rating divergence on enterprise productivity by analyzing a panel dataset of 1024 A-share listed companies in China from 2015 to 2022. The results reveal that ESG rating divergence significantly reduces enterprise productivity by increasing financing constraints and costs, with a more pronounced effect on low-carbon, small-sized, and state-owned firms. Furthermore, variables such as R&D expenditure, internal governance, environmental regulations, and media attention are found to moderate this relationship. The study provides valuable insights for governments in formulating and implementing ESG-related policies.

Suggested Citation

  • Tu, Qiang & Zuo, Limei & Liang, Anran & Yao, Ye & Liu, Diyi, 2025. "Does ESG rating divergence decrease enterprise productivity? Evidence from China," Research in International Business and Finance, Elsevier, vol. 77(PB).
    • Handle: RePEc:eee:riibaf:v:77:y:2025:i:pb:s0275531925002235
    DOI: 10.1016/j.ribaf.2025.102967
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