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An Investigation into the Effects of Environmental, Social, and Corporate Governance (ESG) Performance and Financing Limitations on Total Factor Productivity

Author(s)

Xuedong Zhang1, Ying Chen2,*

Affiliation(s)

1Financial Department, Langfang Normal University, Langfang, Hebei, China 2Research Department, Langfang Normal University, Langfang, Hebei, China *Corresponding Author

Abstract

As the Chinese government increasingly prioritizes high-quality and sustainable economic development, Environmental, Social, and Corporate Governance (ESG) performance and Total Factor Productivity (TFP) have become central topics in academic research. This study focuses on non-state-owned enterprises in China, analyzing the impact of ESG performance on TFP and exploring the mediating role of financing constraints in this relationship. The findings indicate that alleviating financing constraints can enhance TFP, while strong ESG performance helps to ease these constraints, thereby further promoting productivity growth. Financing constraints play an intermediary role between ESG and TFP, revealing pathways for enterprises to improve TFP and elaborating on the mechanisms through which ESG performance exerts its influence.

Keywords

ESG Performance; Financing Constraints; Mediating Effect; Non-State-Owned Enterprises; Total Factor Productivity

References

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