Corporate ESG Disclosure and Technological Innovation Capability : The Role of Financing Constraints

The present paper introduced financing constraints (FC) to examine the relationship between environmental, social, and governance (ESG) disclosure and technological innovation capability (TIC). We employed Bloomberg’s ESG disclosure score covering the period 2011–2019, using overall technological innovation (OTI), substantial technological inno-vation (STI), and non-substantial technological innovation (NSTI) as proxy indicators of TIC. Further, this study explored the moderating effect of green and high-tech industries, providing more policy enlightenment on green credit. Our results were statistically significant and consistent transmissions with adopted financing constraints as well as different grouping methods throughout the sample period. In particular, the connectedness exhibits dynamic patterns by 2SLS and GMM regression, highlighting the risk of financing constraints are the shock transmitters from ESG disclosure to TIC performance