The Impact of ESG Performance on Corporate Financial Performance: Evidence from Listed Manufacturing Companies in Jiangsu Province

Abstract

This study examines the impact of ESG performance on corporate financial outcomes using listed manufacturing firms in Jiangsu Province from 2013--2023 as the sample. Drawing on Huazheng ESG ratings and financial data, a two-way fixed effects model is employed to explore transmission mechanisms through innovation capability and debt financing costs. Heterogeneity analysis is conducted on the basis of ownership structure and regional differences within Jiangsu Province. The innovation of this study lies in its focus on provincial-level manufacturing sectors and its comprehensive examination of the overall effects across all three ESG dimensions. The results indicate that strong ESG performance enhances corporate performance, with more pronounced effects observed in nonstate-owned enterprises and in northern and central Jiangsu. These findings provide empirical support for enterprises and regulators to advance differentiated ESG practices.