Panel data analysis reveals ESG disclosure reduces financing costs in enterprises, suggesting optimal strategies.
Key Points
The study aims to examine how the quality of ESG information disclosure affects corporate financing costs and to analyze the roles of property rights and information asymmetry.
Utilized panel data of Chinese A-share listed companies from 2019 to 2023
Empirical analysis to assess the impact of ESG disclosure on financing costs
Conducted robustness tests to confirm findings
Performed heterogeneity analysis based on property rights
Executed mechanism tests related to information asymmetry
Improving ESG information disclosure quality significantly reduces both equity and debt financing costs
The cost reduction effect is more pronounced in non-state-owned enterprises compared to state-owned enterprises
Information asymmetry partially mediates the relationship between ESG disclosure and financing costs