Credit guarantee, financing structure, and firm ESG performance

Abstract

This empirical research investigates the complex relationships among credit guarantee mechanisms, financing structures, and environmental, social, and governance (ESG) performance among corporations. The study employs a rich dataset spanning corporations from 2000 to 2022. Econometric analyses reveal nuanced associations, including unexpected negative correlations between ESG combined scores and environmental innovation. Static and dynamic panel modeling highlights the need for robust statistical adjustments. This study contributes to an understanding of the multifaceted dynamics that shape corporate behavior, emphasizing the importance of aligning financial decisions with sustainable practices. Future research should conduct causal exploration, qualitative methodologies, temporal analyses, global comparisons, and industry-specific studies.