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

Authors

Keywords:

Sustainable development, ESG performance, Corporate competitiveness, Financing constraints, Corporate life cycle

Abstract

ESG performance is an essential practical tool for driving high-quality corporate development. This research constructs a research framework of "ESG performance - financing constraints - corporate competitiveness" to explore the relationships among these three variables. Using unbalanced panel data of A-share listed companies in China from 2018 to 2022, this study empirically examines the impact of ESG performance on corporate competitiveness and the mediating role of financing constraints. The results indicate that Chinese companies can simultaneously improve ESG performance and corporate competitiveness while pursuing the Sustainable Development Goals (SDGs) (such as SDGs 8 and 9), with financing constraints mediating role. Furthermore, the correlation between ESG performance and competitiveness also shows significant heterogeneity. For firms in growth and maturity, the positive impact of ESG performance on competitiveness is more evident. This study clarifies how China can leverage the synergies between ESG performance, financing constraints, corporate life cycle, and competitiveness under the SDGs.

Author Biographies

Ong Tze San

Tze-San Ong, PhD, is a full professor of Accounting at the School of Business andEconomics, Universiti Putra Malaysia. She holds her PhD from the University ofLeeds, UK in 2005. Her research has been published in various prestigious journals,such as the Journal of Cleaner Production, Business Strategy & the Environment,Journal of Intellectual Capital, Environment, Development and Sustainability, theInternational Journal of Productivity and Performance Management, Resources,Conservation & Recycling, Ecosystem Health and Sustainability and many more. Todate, she has published more than 100 academic articles, and chapters-in-book locallyand internationally. Her research interests include corporate sustainability, corporateperformance measurement systems, corporate governance, management accounting,and carbon accounting.

Xuran Gao

Xuran Gao was born in Xinyang, Henan, PR China 1992. She received her masterdegree from South China Normal University, China in 2017 and is pursuing her PhDin Accounting from Universiti Putra Malaysia. She works in the School ofAccounting, Nanfang College, Guangzhou. Her main research area is EnvironmentalAccounting, ESG, and Corporate Governance.

Yusniyati Yusri

Yusniyati Yusri is a senior lecturer at the School of Business and Economics atUniversiti Putra Malaysia. She earned her PhD from the Universiti Sains Malaysia in2014. Her research has been published in various prestigious journals, such as theJournal of Advanced Research in Business and Management Studies, InternationalBusiness Management, International Journal of Economics & Commerce andResearch, Malaysian Accounting Review, and many more. Her research interestsinclude financial accounting, management accounting, and corporate reporting andtaxation.

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Published

2025-12-05

Issue

Vol. 24 (2025): ASIAN JOURNAL OF ACCOUNTING AND GOVERNANCE

Section

Articles

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