Does ESG performance affect trade credit financing? Evidence from China

IF 6.3 2区经济学 Q1 BUSINESS, FINANCE

Research in International Business and Finance Pub Date : 2025-02-01 DOI:10.1016/j.ribaf.2024.102715

Yonghui Lian , Zixin Yang , Hong Cao

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Abstract

This paper explores the impact of corporate environmental, social, and governance (ESG) performance on companies’ trade credit financing via a sample of publicly traded Chinese companies from 2009 to 2021. The results indicate that ESG performance has a positive effect on companies’ trade credit financing. Mechanism analysis reveals that reducing corporate risk, enhancing product market competitiveness, and improving information disclosure quality are the primary channels through which ESG performance improves trade credit financing. Heterogeneity analysis reveals that the positive impact of ESG performance on trade credit financing is more significant for companies with lower levels of supplier concentration and customer concentration, as well as for companies facing higher levels of financing constraints. Further analysis shows that ESG performance helps companies obtain trade credit from both their suppliers and their customers. In addition, this paper provides evidence that ESG performance helps reduce the cost of trade credit financing.

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来源期刊

Research in International Business and Finance BUSINESS, FINANCE-

CiteScore

11.20

自引率

9.20%

发文量

240

期刊介绍： Research in International Business and Finance (RIBAF) seeks to consolidate its position as a premier scholarly vehicle of academic finance. The Journal publishes high quality, insightful, well-written papers that explore current and new issues in international finance. Papers that foster dialogue, innovation, and intellectual risk-taking in financial studies; as well as shed light on the interaction between finance and broader societal concerns are particularly appreciated. The Journal welcomes submissions that seek to expand the boundaries of academic finance and otherwise challenge the discipline. Papers studying finance using a variety of methodologies; as well as interdisciplinary studies will be considered for publication. Papers that examine topical issues using extensive international data sets are welcome. Single-country studies can also be considered for publication provided that they develop novel methodological and theoretical approaches or fall within the Journal''s priority themes. It is especially important that single-country studies communicate to the reader why the particular chosen country is especially relevant to the issue being investigated. [...] The scope of topics that are most interesting to RIBAF readers include the following: -Financial markets and institutions -Financial practices and sustainability -The impact of national culture on finance -The impact of formal and informal institutions on finance -Privatizations, public financing, and nonprofit issues in finance -Interdisciplinary financial studies -Finance and international development -International financial crises and regulation -Financialization studies -International financial integration and architecture -Behavioral aspects in finance -Consumer finance -Methodologies and conceptualization issues related to finance