ESG Performance And Commercial Credit Financing

In the current era of promoting enterprise transformation and upgrading and promoting high-quality economic development,enterprises,as a strong supporting body to achieve high-quality economic development,need to enhance their sense of responsibility,improve the speed of transformation and upgrading of their products,and achieve sustainable development has been widely recognized by people from all walks of life in society.While pursuing the maximization of economic benefits,enterprises are also urged to pay attention to their own economic behaviors and social activities under the supervision of people from all walks of life,so as to give consideration to environmental protection,public interests and environmental governance.As the concept of taking into account environmental responsibility,social responsibility and governance responsibility,ESG is an important development concept that pursues the unity of economic interests and social interests.Enterprises’ emphasis on ESG investment can make them pay attention to their own non-financial benefits and pay attention to the returns of market stakeholders,and promote the realization of high-quality and sustainable development of enterprises.As an important basis for enterprise operation,development,transformation and upgrading,capital plays an important role in the process of enterprise development.However,high financing difficulty and high financing cost have always been the severe problems faced by enterprises in the capital market.How enterprises obtain the required funds at a lower cost is also an issue widely concerned by many scholars.Business credit financing comes from the business business activities of credit sales,which is easy to obtain,low cost,and to some extent ease the financing efficiency problem faced by Chinese enterprises.Therefore,it is necessary to deeply study the impact of corporate ESG performance on commercial credit financing,which is of great significance to improve corporate ESG behavior and promote high-quality economic development.This paper firstly summarizes the current academic literature on the economic consequences of enterprise ESG performance.Enterprise ESG performance not only affects its internal economic activities,but also influences external stakeholders such as audit and institutional investors.It reviews the existing literature on the factors affecting commercial credit from three aspects: national macro level,market medium level and enterprise micro level.Secondly,combined with the theory of sustainable development,the theory of corporate social responsibility theory,the theory of information asymmetry,etc.,this paper takes non-financial listed companies in Shanghai and Shenzhen Stock Exchange from 2010 to 2021 as samples to investigate the impact of corporate ESG performance on the scale and cost of commercial credit financing.Meanwhile,Explore the mediating role of business risk and information risk in ESG performance on commercial credit financing scale and financing cost;Finally,in the further analysis,the impact of ESG performance on commercial credit financing scale and financing cost is analyzed under different market competitive positions,different ownership concentration and different legal environment.The findings are as follows: first,good ESG performance of enterprises can help enterprises obtain more commercial credit financing scale and reduce financing costs;Second,business risk and the risk of information asymmetry play an intermediary role in the scale and cost of commercial credit financing;Thirdly,good ESG performance has a more significant effect on promoting the scale of commercial credit financing and reducing the cost of commercial credit financing when the enterprise has a high competitive position in the market,a high concentration of equity and a perfect legal environment in the enterprise region.From the perspective of ESG performance,this paper discusses its impact on corporate commercial credit financing,enriches the existing literature on the economic consequences of ESG performance,supplements the current literature on the influencing factors of corporate credit financing,and makes an in-depth analysis of the influence path of corporate ESG performance on the scale of commercial credit financing.Moreover,the differences of ESG performance on the scale of commercial credit financing and financing cost of enterprises in different market competitive position,different concentration of equity and different regional legal environment are distinguished.The research results provide a reasonable basis for enterprises and people from all walks of life to pay attention to ESG performance of enterprises,and also provide feasible methods for enterprises to obtain financing and reduce financing costs.