Author(s)

Simin Lyu ¹, Jiahui Xue ¹

Affiliation(s)

¹ College of Finance and Economics, Hainan University of Science and Technology, Haikou, 570000, China

Corresponding Author

ABSTRACT

This paper discusses the mitigation path of ESG standards on the financing constraints of small and medium-sized enterprises (SMEs). By combing the relevant theories and studies at home and abroad, the impact mechanism of ESG standards on the mitigation of corporate financing constraints is analyzed in depth. It is found that enterprises with good ESG performance can transmit more active and positive signals to the market, thus improving the information environment, reducing the level of internal and external information asymmetry, and effectively alleviating financing constraints. Combining multiple research perspectives, this paper elaborates in detail how ESG criteria positively affect SME financing constraints through multiple paths such as information effect, governance effect, stakeholder effect and sustainable development effect. In particular, good ESG performance not only meets regulatory requirements and enhances investor trust, but also further expands financing channels by improving long-term corporate development and financial performance.

KEYWORDS

CITE THIS PAPER

Simin Lyu, Jiahui Xue, A Path Study of ESG Standards for SME Financing Constraint Mitigation. Accounting and Corporate Management (2024) Vol. 6: 103-107. DOI: http://dx.doi.org/10.23977/acccm.2024.060414.

REFERENCES

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