Research on the Impact of ESG Rating on Enterprise Growth

Abstract

ESG transformation is profoundly changing corporate goals and business logic, improving the growth potential of enterprises. This article selects data from Chinese A-share listed companies from 2011 to 2021 as research samples to empirically test the impact of ESG rating on enterprise growth and its impact mechanism. Research has found that ESG rating can significantly enhance the growth of enterprises. Meanwhile, the impact of ESG rating on enterprise growth exhibits heterogeneity in different types of enterprises and regions with different degrees of marketization. From the perspective of impact mechanism, ESG rating can promote high-quality development of enterprises and improve enterprise growth by improving financial flexibility and alleviating financing constraints. This article provides relevant theoretical evidence for the practice of implementing the ESG rating in enterprises and it has important practical guiding significance for the government to formulate enterprise information disclosure and ESG evaluation systems, as well as for China to further promote high-quality transformation and growth of the macro economy.