Research On The Impact Of ESG Performance Of Manufacturing Listed Companies On Credit Risk

As an important entity promoting "high-quality development",listed companies’ credit risks can lead to serious turbulence in the capital market.ESG performance,as an important indicator for measuring a company’s sustainability,not only considers traditional financial indicators but also non-financial indicators,making it more comprehensive and comprehensive.Studying the impact of ESG performance on credit risk is beneficial for preventing credit risk and maintaining the healthy development of the capital market.Therefore,this article attempts to empirically analyze and confirm that improving ESG performance can reduce a company’s credit risk,providing reference for stakeholders.This article takes manufacturing listed companies in the Shanghai and Shenzhen Ashare markets from 2009 to 2021 as the research object,and uses a dual fixed effect model that simultaneously controls individuals and time to study the impact of ESG performance on credit risk of listed companies.Based on this,further analysis,mechanism analysis,and heterogeneity analysis are conducted.The empirical results indicate that good ESG performance of listed companies can reduce credit risk;From further analysis,there are differences in the impact of the sub dimensions of ESG performance on credit risk among listed companies.The E and S dimensions have a significant reducing effect on credit risk,while the G dimension has no significant effect;From the perspective of mechanism analysis,financing constraints,profitability,operational risk,company value,and external supervision all play a role in the process of ESG performance affecting credit risk;From the perspective of heterogeneity analysis,compared with state-owned listed companies,nonstate-owned listed companies have a more significant effect on reducing credit risk by improving ESG performance;Compared with listed companies in the central and western regions,the ESG performance of listed companies in the eastern region is more significant in reducing credit risk;Compared to listed companies in heavily polluting industries,ESG performance of listed companies in non heavily polluting industries has a more significant effect on reducing credit risk;Compared with mature listed companies,the ESG performance of growth and decline listed companies has a more significant impact on credit risk.The main contributions of this article include: firstly,selecting listed companies in the manufacturing industry and conducting targeted research on the impact of ESG performance on their credit risk;The second is to enrich and improve the impact path between ESG performance and credit risk,and comprehensively analyze the mechanism of ESG performance’s impact on credit risk through profitability,financing constraints,operational risk,company value,and external supervision;The third is to examine the differential impact of ESG performance and credit risk of companies in different regions,polluting industries,property rights,and life cycle stages in response to heterogeneity.