ESG performance and debt financing costs: Evidence from Chinese real estate companies

Yingying Duan; Mohd Wira Mohd Shafiei; Radzi bin Ismail

doi:10.30822/arteks.v11i3.5252

Authors

Yingying Duan University of Science Malaysia
Mohd Wira Mohd Shafiei University of Science Malaysia
Radzi bin Ismail University of Science Malaysia

DOI:

https://doi.org/10.30822/arteks.v11i3.5252

Keywords:

Debt financing costs, ESG performance, Media attention, Real estate companies

Abstract

Environmental, Social, and Governance (ESG) performance has become a crucial metric for assessing corporate sustainability. Against the backdrop of China’s urban transformation and green development agenda, ESG performance may exert a critical influence on the financing environment for real estate enterprises, key participants in urban construction and renewal. This study examines the relationship between ESG performance and debt financing costs for Chinese real estate firms, further investigating the moderating role of media attention. This empirical analysis examines data from Chinese A-share listed real estate companies between 2009 and 2022. After excluding samples with severe data missingness and considering the availability of CSI ESG data, a valid sample of 899 observations from 110 companies was obtained. A fixed-effects panel model was employed to investigate the relationship between overall ESG performance and debt financing costs. Results indicate that the ESG performance of listed real estate companies significantly influences debt financing costs, with media attention acting as a moderator.

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