ESG performance impacts corporate transparency and credit ratings in Chinese companies.
The study looked at how well Chinese companies disclose information about their environmental, social, and governance practices. Companies with strong ESG performance tend to be more transparent than those with lower ESG performance. However, having a lot of institutional investors or analysts paying close attention can weaken this positive effect. Transparency also plays a role in how ESG performance affects a company's credit rating. These findings can help regulators monitor ESG disclosure by listed companies and improve information sharing.