Does the ESG Rating Inhibit the Productivity of Companies?

ESG rating has become a key factor influencing its perception and decision-making of companies, but there are significant differences in the rating results of ESG rating agencies. Current research mainly focuses on the economic impact of ESG rating divergence, while insufficient attention has been paid to their impact on corporate growth capabilities. This article is based on the perspective of stakeholders and uses A-share-listed companies in China from 2016 to 2023 as research samples to empirically analyze the correlation mechanism between ESG ratings, rating divergence, and corporate productivity. Research has found that higher ESG ratings are associated with higher corporate productivity, but significant differences in ESG ratings weaken this effect. This conclusion remains valid in robustness tests and addressing endogeneity issues. The mechanism test confirms that ESG rating divergence exacerbates financing constraints and managerial short-termism, thereby reducing corporate productivity. Further analysis shows that the negative impact of ESG rating divergence is more pronounced in companies with better information environments and ESG information disclosure with lower quality. Moreover, compliance with the GRI disclosure framework and providing independent environmental reports are effective methods of improving ESG. These findings contribute to the optimization of ESG rating management and corporate information governance, providing empirical evidence on the economic consequences of ESG rating divergence in emerging capital markets.