How does ESG performance determine the level of specific financing in capital structure? New insights from China

IF 7.5 1区经济学 Q1 BUSINESS, FINANCE

International Review of Financial Analysis Pub Date : 2024-07-29 DOI:10.1016/j.irfa.2024.103508

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引用次数: 0

Abstract

Sustainable finance has gained attention as investors emphasize environmental, social, and governance (ESG) factors in investment decisions. Understanding ESG's impact on corporate financing is crucial for stakeholders. However, evidence on ESG and capital structure, especially in Chinese enterprises, is limited. This study investigates the link between ESG performance and capital structure in Chinese firms, focusing on debt and equity financing. Using panel data from 2010 to 2022 and the system GMM model, the study controls for firm-specific factors. Results show environmental and governance scores negatively relate to debt financing and positively to equity financing. Social scores show no significant impact on debt but a positive one on equity financing. All ESG indicators positively relate to the debt-to-equity ratio, highlighting sustainability's role in capital structure decisions. These findings guide policymakers in incentivizing sustainable practices and help corporate leaders align financing strategies with sustainability goals, supporting long-term growth and stakeholder value.

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ESG绩效如何决定资本结构中的特定融资水平？来自中国的新见解

随着投资者在投资决策中强调环境、社会和治理 (ESG) 因素，可持续金融备受关注。了解 ESG 对企业融资的影响对利益相关者至关重要。然而，有关 ESG 与资本结构（尤其是中国企业的资本结构）的证据非常有限。本研究调查了中国企业的环境、社会和公司治理绩效与资本结构之间的联系，重点关注债务融资和股权融资。研究使用 2010 年至 2022 年的面板数据和系统 GMM 模型，控制了企业的特定因素。结果显示，环境和治理得分与债务融资负相关，与股权融资正相关。社会得分对债务融资没有重大影响，但对股权融资有积极影响。所有环境、社会和治理指标都与债务权益比呈正相关，突出了可持续发展在资本结构决策中的作用。这些发现为政策制定者激励可持续发展实践提供了指导，并帮助企业领导者将融资战略与可持续发展目标相结合，支持长期增长和利益相关者价值。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Review of Financial Analysis BUSINESS, FINANCE-

CiteScore

10.30

自引率

9.80%

发文量

366

期刊介绍： The International Review of Financial Analysis (IRFA) is an impartial refereed journal designed to serve as a platform for high-quality financial research. It welcomes a diverse range of financial research topics and maintains an unbiased selection process. While not limited to U.S.-centric subjects, IRFA, as its title suggests, is open to valuable research contributions from around the world.