Proceedings of the 2022 4th International Conference on Economic Management and Cultural Industry (ICEMCI 2022)

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Financial Constraint’ Impact on Firms’ ESG Rating Based on Chinese Stock Market

Authors
Ting Liu1, *
1University of California, Riverside, US
*Corresponding author. Email: tliu023@ucr.edu
Corresponding Author
Ting Liu
Available Online 27 December 2022.
DOI
10.2991/978-94-6463-098-5_122How to use a DOI?
Keywords
ESG rating; Financial Constraint; finance
Abstract

Enterprises with strong financing constraints will be under the pressure of difficult obtaining funds and are more likely to fall into financial difficulties. This will also have a certain impact on the ESG rating of rating agencies. This paper explores the impact of corporate financing constraints on ESG ratings. Firstly, this paper constructs the financing constraint index through principal component analysis and then uses the regression model to explore the impact of financing constraints on ESG scores. The results of the article show that the degree of financing constraints of the company (the smaller the FC value) has a negative impact on the ESG rating of the company. The result is similar to the score for environmental protection, social responsibility, and corporate governance. This paper will contribute to the expansion of the literature on ESG ratings-related areas in corporate finance.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2022 4th International Conference on Economic Management and Cultural Industry (ICEMCI 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
27 December 2022
ISBN
10.2991/978-94-6463-098-5_122
ISSN
2352-5428
DOI
10.2991/978-94-6463-098-5_122How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Ting Liu
PY  - 2022
DA  - 2022/12/27
TI  - Financial Constraint’ Impact on Firms’ ESG Rating Based on Chinese Stock Market
BT  - Proceedings of the 2022 4th International Conference on Economic Management and Cultural Industry (ICEMCI 2022)
PB  - Atlantis Press
SP  - 1085
EP  - 1095
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-098-5_122
DO  - 10.2991/978-94-6463-098-5_122
ID  - Liu2022
ER  -