IDEAS home Printed from https://ideas.repec.org/h/spr/advbcp/978-94-6239-719-4_24.html

The Impact of ESG Rating Discrepancies on Corporate Financial Flexibility

Author

Listed:
  • Yiying Qi

    (Qingdao University of Technology, School of Business)

Abstract

This paper examines the impact of ESG rating discrepancies on corporate financial flexibility and the underlying mechanisms. The results indicate that ESG rating discrepancies have a significant positive effect on financial flexibility. Mechanism analysis reveals that these discrepancies enhance financial flexibility by reducing financing constraints and attracting patient capital. Heterogeneity analysis suggests that this positive effect is more pronounced among heavily polluting enterprises. In light of these findings, the following policy recommendations are proposed: at the policy level, efforts should be accelerated to improve the ESG rating system, optimize green finance policies, and implement differentiated regulation. At the corporate level, firms should rationally address ESG rating divergences and actively engage with patient capital. High-pollution enterprises should increase environmental protection investments and green technology R&D, establish risk early-warning mechanisms, and leverage rating divergences to effectively enhance financial flexibility and risk-resilience.

Suggested Citation

  • Yiying Qi, 2026. "The Impact of ESG Rating Discrepancies on Corporate Financial Flexibility," Advances in Economics, Business and Management Research,, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6239-719-4_24
    DOI: 10.2991/978-94-6239-719-4_24
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:advbcp:978-94-6239-719-4_24. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.