ESG Rating Divergence and Trade Credit Financing : Promotion or Inhibition ?

Abstract

ESG plays a key role in promoting sustainable development strategies. Data integrators integrate ESG-related information of enterprises and provide measurable reference for investors. However, different ESG rating agencies have different rating results for the same enterprise, which brings trouble to users in evaluating company information and formulating relevant investment strategies. This paper takes 2009-2022 Shanghai and Shenzhen A-share listed companies as the research object, and examines the relationship between ESG rating divergence and trade credit financing from the perspective of supply chain financing. The study finds that ESG rating divergence significantly inhibits the trade credit financing of enterprises, which is mainly achieved by aggravating the divergence of analysts ' forecasts and increasing the business risks of enterprises. Heterogeneity analysis shows that ESG rating divergence have a more significant inhibitory effect on trade credit financing in enterprises with high supply chain discourse power, strong supply chain stability and weak development ability. The conclusions of this paper are helpful to understand the economic consequences of ESG rating divergence and enrich the research on the influencing factors of trade credit financing.