ESG performance and corporate competitiveness under the SDGs: The mediating role of financing constraints

Abstract

ESG performance is an essential practical tool for driving high-quality corporate development. This research constructs a research framework of "ESG performance - financing constraints - corporate competitiveness" to explore the relationships among these three variables. Using unbalanced panel data of A-share listed companies in China from 2018 to 2022, this study empirically examines the impact of ESG performance on corporate competitiveness and the mediating role of financing constraints. The results indicate that Chinese companies can simultaneously improve ESG performance and corporate competitiveness while pursuing the Sustainable Development Goals (SDGs) (such as SDGs 8 and 9), with financing constraints mediating role. Furthermore, the correlation between ESG performance and competitiveness also shows significant heterogeneity. For firms in growth and maturity, the positive impact of ESG performance on competitiveness is more evident. This study clarifies how China can leverage the synergies between ESG performance, financing constraints, corporate life cycle, and competitiveness under the SDGs.