ESG Performance,Financing Constraints And R&D Investment

In the process of transitioning to high-quality economic development,innovation plays an increasingly important role.General Secretary Xi Jinping has emphasized that innovation is an urgent requirement and important direction for promoting highquality development.Therefore,as the micro-subjects for improving economic growth quality,enterprises must attach importance to enhancing their R&D capabilities.However,due to factors such as high consumption of R&D funds,high confidentiality,and high risks associated with R&D activities,enterprises face severe financing constraints in obtaining R&D investment funds.Good ESG performance by companies not only conveys positive signals to external stakeholders about the company’s social responsibility and strong capabilities,strengthens connections with various stakeholders,but also reduces information asymmetry and enhances investor confidence in the company.So,can positive ESG performance by companies alleviate financing constraints and promote R&D investment? Therefore,this paper explores the impact of corporate ESG performance and financing constraints on R&D investment,which is of significant importance in promoting corporate attention to ESG management,alleviating financing constraints faced by companies,and promoting the enhancement of corporate R&D capabilities.This paper first analyzes previous research findings and provides a review from three aspects: corporate ESG performance and R&D investment,financing constraints and R&D investment,and corporate ESG performance and financing constraints.Secondly,based on stakeholder theory,information asymmetry theory,agency theory,and resource dependence theory,this paper analyzes the relationship between corporate ESG performance,financing constraints,and R&D investment,and proposes research hypotheses.Finally,taking the A-share listed companies in China from 2010 to 2021 as the research objects,this paper verifies the relationship between corporate ESG performance and R&D investment.Based on this,the mediating effect of financing constraints is examined using the mediation effect test method.In addition,considering that market competition level and the nature of corporate pollution may affect the relationship among the three factors,further research is conducted through group studies to explore the differences in the effects.The research findings reveal that corporate ESG performance has a positive impact on R&D investment,and corporate ESG performance has a negative impact on financing constraints.Financing constraints play a partial mediating role in the impact of corporate ESG performance on R&D investment,i.e.,corporate ESG performance indirectly promotes R&D investment by alleviating financing constraints.In highly competitive markets and non-polluting companies,the positive impact of corporate ESG performance on R&D investment and the mediating effect of financing constraints are more significant.Based on the research conclusions,the following recommendations are proposed:First,the government should improve the ESG information disclosure system,unify the ESG evaluation standard system,and establish a long-term mechanism for ESG rating,encouraging companies to proactively disclose ESG information.Second,companies should enhance their awareness of ESG principles and practices,strengthen social responsibility construction,and optimize their capital structure and financing system.Third,the public should supervise companies and urge them to attach importance to ESG development.