External guarantees and ESG performance in China: Resource constraints or impression management?

IF 7.5 1区经济学 Q1 BUSINESS, FINANCE

International Review of Financial Analysis Pub Date : 2024-11-01 DOI:10.1016/j.irfa.2024.103762

Yunling Song , Chengying Xu , Li Wei

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引用次数: 0

Abstract

External guarantees provided by listed firms are prevalent in China, influencing firms' motivations and capabilities concerning other business strategies. ESG (Environmental, Social, and Governance) represents a strategic imperative for companies aiming at sustainable development. Understanding how external guarantees impact ESG performance is essential for advancing the ESG agenda. This study examines the relationship between the intensity of external guarantees and ESG performance among Chinese listed firms from 2009 to 2021. Our results consistently show a negative correlation between external guarantee intensity and ESG performance, impacting all ESG pillars and remaining robust through various robustness and endogeneity checks. The mechanisms underlying this impact include reduced resources, diminished stakeholder welfare, and hindered green innovation. The extent of this impact is influenced by environmental regulation, social trust, and market position while unaffected by the needs for impression management. These findings suggest that regulatory interventions in external guarantees could improve ESG outcomes, with significant implications for policymakers and corporate governance.

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中国的外部担保与环境、社会和公司治理绩效：资源限制还是印象管理？

在中国，上市公司提供外部担保的现象十分普遍，这影响了公司在其他业务战略方面的动机和能力。ESG（环境、社会和治理）是企业实现可持续发展的战略需要。了解外部保障如何影响 ESG 表现对于推进 ESG 议程至关重要。本研究考察了 2009 年至 2021 年中国上市公司对外担保强度与 ESG 表现之间的关系。研究结果表明，对外担保强度与企业的环境、社会和公司治理绩效之间存在负相关关系，对所有环境、社会和公司治理支柱都有影响，并且通过各种稳健性和内生性检验后仍然保持稳健。这种影响的机制包括资源减少、利益相关者福利降低和绿色创新受阻。这种影响的程度受环境监管、社会信任和市场地位的影响，而不受印象管理需求的影响。这些研究结果表明，对外部担保的监管干预可以改善环境、社会和公司治理的结果，对政策制定者和公司治理具有重要意义。

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.