The Relationship Between ESG Performance and Financial Constraints and Its Impact on Firm Value

Based on the data of China's A-share market from 2015 to 2020, this project examines the relationship between environmental protection performance and financing restrictions at the corporate level, and discusses the mechanism of financing restrictions on corporate valuation. Empirical analysis shows that the enterprises with better environmental protection performance have fewer financing restrictions, and the enterprises with better environmental protection performance have fewer financing restrictions. In addition, there is a significant positive relationship between environmental protection performance and enterprise value, that is, the higher the environmental protection performance, the higher the enterprise value. The study found that the impact of environmental governance performance on companies is mainly determined by financing restrictions, that is to say, environmental governance performance can improve the value of companies by reducing financing restrictions. Industrial attributes, property rights and other factors will also have a certain impact on the impact between the two, among which, high pollution industries, state-owned enterprises and other factors have a greater impact on the two. Finally, the results obtained through empirical analysis have a certain guiding significance for the business decisions of relevant departments and enterprises.