| Popis: |
This paper investigates the effect of Environment, Social, and Governance (ESG) rating on corporations’ trade credit financing. Using a sample of 1235 Chinese companies, we find that those with higher ESG ratings perform better in raising trade credit financing. In addition, the positive relationship between ESG rating and trade credit financing is more pronounced in big and non-state-owned firms. The study's central message is that ESG plays an essential role in predicting trade credit financing. Hence, it should not be ignored while considering firms’ expenditure, especially for big and non-state-owned firms. |
