ESG rating disagreement and bank loan availability: Evidence from China
2025
ESG Rating Disagreement and Bank Loan Availability in China
Sample size: 16699
publication
Evidence: high
Author Information
Author(s): Qin Jidong, Wang Meijia
Primary Institution: Business School, Chengdu University of Technology, Chengdu, China
Hypothesis
Does ESG rating disagreement affect bank loan availability?
Conclusion
Greater ESG rating disagreement leads to a decrease in newly obtained bank loans.
Supporting Evidence
- ESG rating disagreement significantly affects bank loan availability.
- Greater ESG rating disagreement corresponds to lower bank loan availability.
- The negative effect of ESG rating disagreement is stronger for firms with poor financing capabilities.
Takeaway
When companies get different scores for their environmental and social practices, it makes it harder for them to get loans from banks.
Methodology
The study used data from Chinese A-share listed companies from 2014 to 2022 and employed multiple regression analyses and fixed effects.
Limitations
The study only considered overall ESG disagreement and did not explore specific ESG dimensions.
Participant Demographics
Chinese A-share listed companies from 2014 to 2022.
Statistical Information
P-Value
p<0.05
Statistical Significance
p<0.05
Digital Object Identifier (DOI)
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