For Chinese-listed companies, there is a significant negative correlation between the environmental, social, and governance (ESG) score and the firm’s cost of equity (COE), a new paper finds. What’s more, the analysis examines each component of the ESG score and finds that the “G” score component has the greatest influence on the company’s COE. The researcher also examined manufacturing versus nonmanufacturing companies as well as state-owned enterprises and non-state-owned enterprises separately and found that, for all of them, higher ESG scores reduced COE. The paper is “The Relationship Between ESG Rating and the Cost of Equity Capital: Evidence From China,” by Sunhan Rao (Wenzhou-Kean University, Zhejiang, China), in the March 2023 journal, BCP Business and Management. The paper was presented at the 2022 International Conference on Economics, Mathematical Finance and Risk Management (EMFRM 2022) in Dubai.