September 10, 2025

The ESG Effect: Unveiling Its Influence on Capital Structure in Finance

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Econometric analysis reveals ESG influences financing structure in financial companies, suggesting a dual role in market positioning.

ESG factors significantly influence capital structure decisions across financial companies, showing regional differences.
Environmental and governance issues positively correlate with leverage, suggesting better financing conditions.
Companies focusing on social dimensions tend to rely more on equity, reflecting investor trust and risk perception.
Findings indicate a trade-off between sustainability goals and financing, highlighting ESG's role in financial resilience.

Vierescu et al. (2025) studied this question.

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