ESG Performance, Financing Constraints, and Corporate Financial Performance

Main Article Content

Tingting Luo
School of International Economics and Trade, Xinjiang University of Finance and Economics, Urumqi 830012, China

DOI: https://doi.org/10.70267/fer.250303.7483

Keywords

ESG performance, corporate financial performance, financing constraints, two-way fixed-effects, mediating effect

Abstract

Based on the background of the dual-carbon target and the standardized ESG information disclosure mechanism of listed companies, this paper takes Shanghai-Shenzhen A-share listed companies from 2015 to 2024 as a research sample, constructs a two-way fixed-effects model to test the impact of ESG performance on the financial performance of firms, and explores the intermediary transmission mechanism of financing constraints. The study found that ESG performance has a positive effect on the financial performance of firms, and the results are robust. Financing constraints play a mediating role, and good ESG performance relieves financing constraints and improves the financial performance of firms. Heterogeneity analysis shows that the performance boost effect of ESG is heterogeneous. The research aims to provide an empirical basis for listed companies to promote ESG implementation and regulatory departments to improve green finance-related policies.

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Published
Aug 5, 2026
Issue
Vol. 3 No. 3 (2026)
Section
Research Articles
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This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

Luo, T. . (2026). ESG Performance, Financing Constraints, and Corporate Financial Performance. Financial Economics Research, 3(3), 74-83. https://doi.org/10.70267/fer.250303.7483