TITLE:
ESG Performance, Financing Constraints and Firm Capital Efficiency
AUTHORS:
Ziyi Wang, Wenli Zhu
KEYWORDS:
China, ESG Performance, Capital Efficiency, Financing Constraints, Corporate Governance
JOURNAL NAME:
Open Journal of Business and Management,
Vol.12 No.5,
September
30,
2024
ABSTRACT: Taking all A-share listed companies in Shanghai and Shenzhen from 2018 to 2022 as samples, this paper studies the impact of ESG performance on corporate capital efficiency and the moderating role of financing constraints in it. The empirical results show that ESG performance is positively correlated with corporate capital efficiency, and the better ESG performance is, the higher corporate capital efficiency is. The results are still significant after changing the core variables, lagging one to two periods and PSM. Further research shows that the promotion effect of ESG performance on capital efficiency is more obvious when the enterprise is non-state-owned, non-heavy polluting and non-high-tech. The research conclusions extend the research on the economic consequences of ESG performance and the influencing factors of corporate capital efficiency, and have certain theoretical and practical significance.