ESG performance affects a company's cash holdings by influencing financing constraints and agency issues.Based on the empirical data of China's A-share listed companies from 2017 to 2022,this paper studies the relationship between ESG performance and cash holdings.It is found that good ESG performance of enterprises can reduce the cash holding level of enterprises by easing the financing constraints of enterprises,reducing the on-the-job consumption of management and the capital occupation of major shareholders.This effect is more pronounced in sub-samples charac-terized by less developed markets and limited analyst coverage.Further research finds that good ESG performance can improve the cash holding value of enterprises while reducing the cash holding level,and increase the innovation investment expenditure of enterprises,which greatly optimizes the cash allocation of enterprises.The study reveals the specific effects and inherent logic of the impact of ESG performance on cash holdings in enterprises,which helps to provide empirical evidence for further strengthening ESG construction and optimizing cash management for enterprises.
NETL
NSTL
万方数据
