Scholarlink

<p>Preventing local government debt (LGD) risks is crucial to countries’ development. Using the implementation of China’s New Budget Law in 2015 as a quasi-natural experiment, this paper examines the impact and mechanisms of the LGD governance system reform on corporate ESG performance. The results indicate that the reform of the LGD governance system promotes corporate ESG performance. Mechanism analysis suggests that the reform bolsters the capacity and motivation for corporate ESG practice by alleviating financing constraints, stimulating investment vitality, and alleviating operating risks, thereby enhancing enterprises’ ESG performance. Furthermore, the reform effects are more pronounced in state-owned enterprises, large-scale enterprises, and enterprises with fierce market competition. This study provides a reference for deepening the reform of LGD governance and promoting the sustainable transformation of enterprises.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

The effect of local government debt governance system reform on corporate ESG performance: evidence from China

  • 期刊论文

  • 发表日期：

    2026年1月6日

查看全文
  • Hai-jing Cai,
  • Xin Zhou,
  • Qiao-xin Xie

摘要

Preventing local government debt (LGD) risks is crucial to countries’ development. Using the implementation of China’s New Budget Law in 2015 as a quasi-natural experiment, this paper examines the impact and mechanisms of the LGD governance system reform on corporate ESG performance. The results indicate that the reform of the LGD governance system promotes corporate ESG performance. Mechanism analysis suggests that the reform bolsters the capacity and motivation for corporate ESG practice by alleviating financing constraints, stimulating investment vitality, and alleviating operating risks, thereby enhancing enterprises’ ESG performance. Furthermore, the reform effects are more pronounced in state-owned enterprises, large-scale enterprises, and enterprises with fierce market competition. This study provides a reference for deepening the reform of LGD governance and promoting the sustainable transformation of enterprises.