An Analysis on the Impact of ESG System Disclosure Quality on Corporate Financing Costs under the Carbon Peaking and Carbon Neutrality Goals

Abstract

This study reviews the link between China's green development path and green finance in recent years, based on the background of the carbon peaking and carbon neutrality goals. The relationship between the quality of corporate ESG disclosure and financing costs of corporate is investigated by using data from Chinese A-share manufacturing enterprises for the period 2012-2020. The study uses a panel data model to estimate the regressions, and finds that The information disclosed about corporate governance and social responsibility in the ESG system has a significant impact on financing costs. As China gradually develops its ecological civilization, the impact of these two dimensions on the financing cost of manufacturing businesses grows more and more. This study examines the effects of the ESG system on business operations from the viewpoint of information disclosure and advances our knowledge of the connection between business sustainability and financing costs.