The Logic and Pathways of Stringent Financial Regulation Empowering Corporate ESG Practices
Abstract
Against the backdrop of high-quality development, ESG has become a key guideline for corporate sustainability. Taking the New Asset Management Regulation introduced in 2018 as a representative policy, this paper systematically explores the internal logic, practical pathways, and challenges of how strong financial regulation empowers corporate ESG practices. From the perspective of internal logic, strong financial regulation can enhance the motivation and ability of corporate ESG practice by lowering financing costs, curbing managerial myopia, and intensifying product market competition. From the perspective of practical pathways, the New Asset Management Regulation has effectively advanced corporate ESG practices through measures such as breaking rigid payment, prohibiting multi-layer nesting, and strengthening asset maturity mismatch management.
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