Research on the Influence Mechanism of ESG Constraints on Corporate Capital Allocation Efficiency in Cross-Border Supply Chain Finance

Abstract

This study investigates the underlying mechanisms through which Environmental, Social, and Governance (ESG) constraints influence corporate capital allocation efficiency within the complex landscape of cross-border supply chain finance. Integrating foundational theories from corporate finance and supply chain management, the research proposes a comprehensive conceptual framework wherein ESG constraints function simultaneously as a robust governance mechanism and a critical resource reallocation signal. Employing a rigorous mixed-methods approach, the study utilizes three in-depth case studies to systematically examine how ESG performance affects financing costs, the moderating role of collaborative supply chain relationships, and the mediating effect of information asymmetry between stakeholders. The empirical findings reveal that stringent ESG constraints can significantly enhance capital allocation efficiency by reducing information asymmetry and optimizing resource distribution across the entire global supply chain network. Furthermore, strong ESG performance directly lowers financing costs and improves overall access to capital, while strategic ESG alignment between supply chain partners substantially enhances mutual coordination and trust. Enhanced ESG disclosure serves as a highly credible signal of underlying firm quality, effectively reducing information barriers that traditionally distort investment decisions. However, the magnitude of these effects varies considerably with specific industry characteristics, regional regulatory stringency, and the inherent complexity of cross-border operations. Ultimately, this study contributes to the growing literature by bridging sustainable finance and corporate capital management, offering actionable insights for multinational firms navigating strict regulatory compliance and seeking long-term operational efficiency.