ESG performance and corporate competitiveness under the SDGs: the mediating role of financing constraints

ESG performance is an essential practical tool for promoting high-quality corporate development. This research constructs a conceptual framework of “ESG performance – financing constraints – corporate competitiveness” to analyze the relationships among these variables. Using unbalanced panel data from A-share listed companies in China between 2018 and 2022, this study empirically examines the impact of ESG performance on corporate competitiveness and the mediating role of financing constraints. The results reveal that Chinese companies can simultaneously enhance ESG performance and corporate competitiveness while pursuing the Sustainable Development Goals (SDGs) (such as SDGs 8 and 9), with financing constraints mediating factors. Furthermore, the relationship between ESG performance and competitiveness exhibits significant heterogeneity. For firms in growth and maturity stages, the positive effect of ESG performance on competitiveness is more pronounced. This study clarifies how China can harness the synergies between ESG performance, financing constraints, corporate life cycle, and competitiveness under the SDGs.

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