Panel regression analysis reveals variables like ESG scores affect financing costs in high-pollution industries.
Corporate green governance has become an increasingly important aspect of sustainable development, particularly in high-pollution industries. This study examines the impact of corporate green governance performance on financing costs by applying a panel regression analysis to data from listed companies operating in China’s highly polluting industries between 2014 and 2023. Key variables included Environmental, Social, and Governance (ESG) scores, ISO 14001 certification status, and records of environmental violations. In addition, this study compares the financial performance of firms with high (top 30) and low (bottom 30) levels of green governance to evaluate potential differences. These results further suggest that the impact varies across industries and regions, reflecting institutional and policy differences. This research contributes to the growing body of literature on green governance by providing empirical evidence on its financial implications and offers practical guidance for managers and policymakers aiming to align corporate practices with development goals.
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Yiruhan et al. (2025) studied this question.
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