Research on the Relationship Between Corporate Governance Performance and Financing Cost Under the Background of ESG Theory

Since the reform and opening up, China's economy has developed rapidly, the market economy is booming, and the financing demand of enterprises is also increasing year by year. As a new development concept, environmental, social and corporate governance (ESG) theory has become an important evaluation index for the future development of enterprises. How to achieve sustainable development has become a necessary challenge for enterprise financing. Based on ESG theory and the empirical analysis, this paper can draw a conclusion that good corporate governance performance can effectively reduce the financing cost. According to this conclusion, this paper puts forward some suggestions on corporate governance based on ESG rating system.