Sustainability of Corporate Finance under ESG Drivers: Moderating investment-financing maturity mismatch

Abstract

 In recent years, corporate ESG performance has received extensive attention from both the academic and business circles and investment-financing maturity mismatch is a core debt issue faced by corporations. To promote the high-quality development of enterprises, this paper examines the impact mechanism of corporate ESG performance on the degree of short-term debt and long-term use based on the data of China's A-share listed companies in the period of 2010-2022. The findings reveal that superior ESG performance significantly reduces the extent of short-term debt overuse by mitigating information asymmetry, fostering increased long-term institutional investor holdings, and curbing corporate over-investment. This negative correlation is particularly pronounced in samples of enterprises characterized by higher risk appetite, non-state ownership, and weaker long-term debt financing capability. This paper not only provides direct empirical evidence for understanding how ESG plays a moderating role in corporate financial decision-making but also provides important insights into how to achieve a balance between long-term growth and risk management while pursuing sustainable operations.