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The Impact of ESG on Corporate Financing Decisions Before and After Covid-19: Evidence from Taiwan

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  • Ji-Ying Fang
  • Wen-Sheng Wang

Abstract

This study examines the differences in corporate financing decisions between companies engaged in ESG activities and those that are not during the COVID-19 pandemic. Our primary focus is on listed companies in Taiwan from 2018 to 2022 and panel regression is employed for analysis. The empirical findings show that companies during the Covid-19 pandemic raise more debt. However, the effect is offset by ESG engagement. As firms conduct more ESG activities, they will raise less debt after the pandemic. Our findings shed some lights on corporate financing decisions. Â JEL classification numbers: G32.

Suggested Citation

  • Ji-Ying Fang & Wen-Sheng Wang, 2024. "The Impact of ESG on Corporate Financing Decisions Before and After Covid-19: Evidence from Taiwan," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 14(4), pages 1-1.
    • Handle: RePEc:spt:apfiba:v:14:y:2024:i:4:f:14_4_1
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    References listed on IDEAS

    as
    1. Srivastava, Jagriti & Sampath, Aravind & Gopalakrishnan, Balagopal, 2022. "Is ESG the key to unlock debt financing during the COVID-19 pandemic? International evidence," Finance Research Letters, Elsevier, vol. 49(C).
    2. Koutmos, Dimitrios, 2018. "Return and volatility spillovers among cryptocurrencies," Economics Letters, Elsevier, vol. 173(C), pages 122-127.
    3. Campello, Murillo & Graham, John R. & Harvey, Campbell R., 2010. "The real effects of financial constraints: Evidence from a financial crisis," Journal of Financial Economics, Elsevier, vol. 97(3), pages 470-487, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    ESG; Capital structure; Covid-19; Financing decisions.;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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