Information Bridges or Monitoring Anchors? How Board Networks Shape ESG Practices' Financing Role in China

This study investigates the impact of environmental, social, and governance (ESG) practices on corporate financing constraints in China, with a focus on how board networks shape this relationship through distinct governance functions. Using a sample of Chinese A‐share listed firms from 2010 to 2022, we establish two key empirical findings. First, our results demonstrate that robust ESG practices significantly alleviate corporate financing constraints. Second, we find board networks amplify this effect through dual governance channels of information bridges and monitoring anchors. The moderating role of board networks is particularly pronounced among firms operating in environments characterised by high information opacity or weak institutional oversight. The results remain consistent across robustness tests, including controls for endogeneity and alternative variable specifications.