Corporate Financing Costs from an ESG Multi-dimensional Perspective: An Empirical Examination of Policy Interaction Effects among A-share Listed Companies

This study adopts a research design of applying the two-way fixed effects.model in the market to examine whether ESG dimensions have a different influence on the costs of corporate financing and the mechanism by which the policy is transmitted using non-financial A-share listed companies between 2015 and 2024 as a research sample. It empirically studies the cross-effect of the ESG environmental (E), governance (G) and social (S) variables on the corporate financing costs, alongside the environmental policy, monetary policy and regulatory policy. The findings show that the three ESG dimensions have a substantial negative impact on the financing cost with the strongest effect found in governance. The cross-effect analysis shows that a tight environmental policy increases the influence of the environmental dimension on the costs reduction, accommodative monetary policy increases the positive effect of the governance dimension, and the intensive regulatory influence increases the worth of the social dimension. The three hypotheses are all proven. The results inform the heterogeneous policy channels, on which the ESG can have impact in reducing financing costs and gives firms information to design differentiated ESG strategies.