ESG disagreement and corporate debt maturity: evidence from China
Abstract This study explores the relationship between corporate environmental, social, and governance (ESG) disagreements and corporate debt maturity. By examining panel samples from Chinese non-financial listed companies covering 2007 to 2020, we find that ESG disagreements negatively influence cor...
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| Format: | Article |
| Language: | English |
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SpringerOpen
2025-01-01
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| Series: | Financial Innovation |
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| Online Access: | https://doi.org/10.1186/s40854-024-00724-1 |
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| _version_ | 1841544346994737152 |
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| author | Kangqi Jiang Jie Zhang Mengling Zhou Zhongfei Chen |
| author_facet | Kangqi Jiang Jie Zhang Mengling Zhou Zhongfei Chen |
| author_sort | Kangqi Jiang |
| collection | DOAJ |
| description | Abstract This study explores the relationship between corporate environmental, social, and governance (ESG) disagreements and corporate debt maturity. By examining panel samples from Chinese non-financial listed companies covering 2007 to 2020, we find that ESG disagreements negatively influence corporate debt maturity. Even after conducting a series of robustness tests and addressing endogeneity concerns, the adverse effects of ESG disagreements persisted. A heterogeneity analysis shows that this negative impact is more significant for non-state-owned enterprises, small enterprises, enterprises with high capital intensity, enterprises with low analyst attention, and enterprises in high-tech industries. Through a mechanism analysis, we discovered that ESG disagreements can lead to information asymmetry and heightened default risk, subsequently affecting the maturity of corporate debt. Further analysis confirms that the negative impact of ESG on the debt structure inhibits long-term investment and exacerbates the mismatch between investment and financing terms. |
| format | Article |
| id | doaj-art-3748b25f70e94c1ab18a92ad367a7ab9 |
| institution | Kabale University |
| issn | 2199-4730 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Financial Innovation |
| spelling | doaj-art-3748b25f70e94c1ab18a92ad367a7ab92025-01-12T12:36:20ZengSpringerOpenFinancial Innovation2199-47302025-01-0111113910.1186/s40854-024-00724-1ESG disagreement and corporate debt maturity: evidence from ChinaKangqi Jiang0Jie Zhang1Mengling Zhou2Zhongfei Chen3Business School, Shantou UniversitySchool of Economics, Jinan UniversitySchool of Credit Management, Guangdong University of FinanceSchool of Economics, Jinan UniversityAbstract This study explores the relationship between corporate environmental, social, and governance (ESG) disagreements and corporate debt maturity. By examining panel samples from Chinese non-financial listed companies covering 2007 to 2020, we find that ESG disagreements negatively influence corporate debt maturity. Even after conducting a series of robustness tests and addressing endogeneity concerns, the adverse effects of ESG disagreements persisted. A heterogeneity analysis shows that this negative impact is more significant for non-state-owned enterprises, small enterprises, enterprises with high capital intensity, enterprises with low analyst attention, and enterprises in high-tech industries. Through a mechanism analysis, we discovered that ESG disagreements can lead to information asymmetry and heightened default risk, subsequently affecting the maturity of corporate debt. Further analysis confirms that the negative impact of ESG on the debt structure inhibits long-term investment and exacerbates the mismatch between investment and financing terms.https://doi.org/10.1186/s40854-024-00724-1ESG disagreementDebt maturityMaturity mismatchChina |
| spellingShingle | Kangqi Jiang Jie Zhang Mengling Zhou Zhongfei Chen ESG disagreement and corporate debt maturity: evidence from China Financial Innovation ESG disagreement Debt maturity Maturity mismatch China |
| title | ESG disagreement and corporate debt maturity: evidence from China |
| title_full | ESG disagreement and corporate debt maturity: evidence from China |
| title_fullStr | ESG disagreement and corporate debt maturity: evidence from China |
| title_full_unstemmed | ESG disagreement and corporate debt maturity: evidence from China |
| title_short | ESG disagreement and corporate debt maturity: evidence from China |
| title_sort | esg disagreement and corporate debt maturity evidence from china |
| topic | ESG disagreement Debt maturity Maturity mismatch China |
| url | https://doi.org/10.1186/s40854-024-00724-1 |
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