Research on the Impact Mechanism of ESG Practice and Policy Stability on Corporate Financing

Yuheng Ren

doi:10.62051/ijgem.v10n1.04

Authors

Yuheng Ren

DOI:

https://doi.org/10.62051/ijgem.v10n1.04

Keywords:

ESG practices, Policy stability, Corporate financing, Impact pathway, Information asymmetry

Abstract

This article focuses on the impact logic of ESG (Environmental, Social, Governance) practices and policy stability on corporate financing. By combining information asymmetry theory, institutional economics theory, and the current status of corporate financing practices, the article analyzes the pathways of the two - ESG practices optimize financing conditions directly by mitigating information gaps and strengthening corporate reputation, while policy stability focuses on reducing environmental uncertainty and regulating the financing empowerment effect of ESG practices. The two work together to build a healthy ecosystem for corporate financing. Research has found that standardized ESG practices can effectively weaken the risk concerns of financial institutions and investors, while continuous and stable policies can build confidence in corporate ESG investment, further loosening the financing environment. All conclusions are based on public policy documents, industry reports, and academic achievements, which can provide practical references for enterprises to optimize financing strategies and governments to formulate relevant policies.

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