| In 2020,China proposed the "dual carbon" goal of achieving carbon peak before 2030 and carbon neutrality before 2060,of which enterprises are the most basic and powerful implementers of China’s "dual carbon" goal,and social responsibility disclosure is an important link to achieve the "dual carbon" goal.Under the guidance of China’s sustainable development policy,all walks of life in the capital market have paid increasing attention to corporate ESG information disclosure,and ESG plays an increasingly important role in whether enterprises can maintain long-term sustainable development.In recent years,under the influence of the new crown epidemic,the global economy has suffered heavy setbacks,and the overall sluggish economic environment has further reduced the ability of enterprises to resist risks,so it has become a proposition and strategic choice for enterprises to implement the concept of sustainable development and actively participate in self-revolution.Nowadays,most of the research on corporate financial risk and corporate ESG performance is analyzed from a single factor from the ESG evaluation system,that is,the impact on corporate financial risk is studied around a single aspect such as environmental protection,social responsibility or the company’s own governance.By summarizing the existing literature,and then guided by ESG,corporate financial risk definition and basic theories related to finance,this paper puts forward four research hypotheses around the central issues of this study.Secondly,this paper takes China’s Shanghai and Shenzhen A-share listed companies from 2016 to 2022 as a research sample,excludes listed companies in the financial industry and listed companies with serious lack of data,constructs a multiple linear regression model by using the ESG rating data disclosed by China Securities as explanatory variables,and empirically analyzes the assumptions in this paper one by one.This paper then analyzes the robustness of the conclusions drawn in the main regression.Firstly,the robustness of the conclusion is tested by substituting variables,and the index measuring the financial risk of enterprises is replaced by the adjusted Z value.At the same time,the ESG rating data used in the main regression is replaced by the ESG rating of Syn Tao Green Finance.Secondly,PSM tests were performed on the main regression results to enhance the stability of the conclusions.For possible endogenous problems,this paper first uses lagging explanatory variables to perform regression analysis of ESG rating data with a lag of 1-3 periods.In addition,by constructing instrumental variables,the average ESG rating of other companies in the company’s region is set as a tool variable to deal with endogenous problems in the model.This paper distinguishes enterprises according to the nature of their property rights,industry characteristics and the degree of marketization in the region where they are located,and analyzes the heterogeneity.Finally,this paper also explores the influence mechanism of corporate ESG rating on corporate financial risk,and analyzes the transmission mechanism by using corporate financing constraints as the mechanism variable.Through relevant research,the following conclusions are finally obtained:(1)The better the ESG rating performance of enterprises,the lower the financial risks they face.(2)Compared with state-owned enterprises,the ESG rating performance of non-state-owned enterprises has a more significant effect on reducing corporate financial risks.(3)Compared with non-polluting enterprises,the ESG rating performance of polluting enterprises has a more significant effect on reducing corporate financial risks.(4)In regions with high marketization process,ESG performance plays a more significant role in reducing corporate financial risks.(5)Corporate ESG ratings may have an impact on corporate financial risks through the degree of corporate financing constraints. |
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