The Impact Of ESG Information Disclosure By Mining Companies On Financing Constraint

In recent years,the frequent occurrence of environmental pollution and social problems around the world has triggered interests in environmental,social and corporate governance issues from a wide range of interests,including international organizations,governments and investors.Especially after the outbreak of the epidemic,investors in the international capital market began to reflect on the traditional economic growth approach and pay more attention to sustainable development.The concept of ESG gradually entered the public eye.Under the background of the dual carbon policy,the idea of responsible investment is emerging,and financial institutions like banks and related investors are more cautious in providing financial support to enterprises.Based on the characteristics of its production and operation model,the mining industry naturally has more potential hazards at the environmental,social and governance levels,which to a certain extent limits its ability to obtain funds and generates financing constraints.Therefore,it is meaningful to consider whether mining companies can improve the quality of ESG disclosure to show their ESG responsibilities to stakeholders and thus alleviate the financing constraint in order to obtain the necessary funds for their sustainable development.Firstly,I have compiled the research theories through an extensive review of relevant domestic and international literature.And based on the current situation of ESG development of mining enterprises,I put forward the research hypothesis on the impact of ESG information disclosure on financing constraints of mining enterprises through theoretical discussion.This paper takes the mining enterprises listed in Shanghai and Shenzhen A-shares from 2011-2021 as the research object,measures the quality of ESG information disclosure of mining enterprises by Huazheng ESG rating index,selects WW index as a measure of financing constraints and uses Bloomberg ESG score as a proxy variable for empirical testing.The results find that high-quality ESG information disclosure of mining firms can effectively alleviate their financing constraint levels.Secondly,this paper introduces the empirical findings into the case study of Zijin Mining.And based on the changes in the quality of ESG disclosure of Zijin Mining and the changes in the level of financing constraints,the influence relationship between the two is elaborated,and the overall trend and correlation analysis is conducted.Finally,an analysis of the impact paths from financing scale,financing structure and financing cost was conducted.The results of the case study found that Zijin Mining’s ESG information disclosure quality improved while its financing constraint level was significantly alleviated.The research in this paper has important research implications.First,this paper enriches the research in the area related to ESG disclosure and financing constraints in the mining industry.It provides an effective way for mining companies to alleviate financing constraints.Second,this paper helps to raise the awareness of domestic mining companies to actively assume ESG responsibilities and improve the quality of ESG information disclosure to promote the sustainable development of the mining industry.