The Impact Of ESG Performance On The Cost Of Debt Financing

In order to achieve the magnificent goal of coordinating and unifying human and nature,since the 18 th NCCPC,the country has vigorously promoted the construction of ecological civilization.At the 75 th UN General Assembly in September 2020,President Xi made a solemn commitment to the world on behalf of China.China promises that China’s carbon emissions will reach its peak by 2030,and gradually decreases,reaching the "carbon neutralization" level by 2060.The goal has made the world see China’s determination,but it has to admit that the achievement of the goal is not easy for China.On one hand,government should formulate a series of related support policies,on the other hand,it is necessary to study whether the company’s environmentally friendly development can bring benefits to its own.With the support of policies,the effects,impact mechanisms of environmentally friendly development have attracted many scholars,but it has not yet been unified conclusions.Therefore,this article sorts out the existing theoretical articles and a certain amount of explanation.Choosing 2009-2021 domestic listed companies as a research sample,build a regression model,and use statistical analysis software to analyze the relationship between ESG performance and debt financing costs.The following conclusions are drawn in this article: First,the ESG performance of the enterprise can promote the green innovation;Second,the ESG performance can reduce the debt financing cost of the company;Third,the ESG performance can reduce debt financing costs,green innovation plays a mesomeric effect role;Fourth,the ESG performance of enterprise has shown heterogeneity in influencing the cost of debt financing under different property rights and different industries.Based on the above conclusions,this paper puts forward the following suggestions: First,government should accelerate the construction of ESG reporting system,increase the support for enterprise green innovation,promote the concept of green and sustainable developmen;Second,enterprises should implement the concept of sustainable development and improve its ESG performance,update their own management and development concept,take the initiative to carry out green innovation,different enterprises should integrate ESG performance and green innovation into their corporate culture organically by combining their own characteristics.