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<article xsi:noNamespaceSchemaLocation="http://jats.nlm.nih.gov/publishing/1.1/xsd/JATS-journalpublishing1-mathml3.xsd" dtd-version="1.1" xmlns:xlink="http://www.w3.org/1999/xlink" xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"><front><journal-meta><journal-id journal-id-type="publisher-id">SSR</journal-id><journal-title-group><journal-title>Scientific and Social Research</journal-title></journal-title-group><issn>2661-4332</issn><eissn>2981-9946</eissn><publisher><publisher-name>Bio-Byword Scientific Publishing Pty. Ltd.</publisher-name></publisher></journal-meta><article-meta><article-id pub-id-type="doi">10.26689/ssr.v7i10.12714</article-id><article-categories><subj-group subj-group-type="heading"><subject>Article</subject></subj-group></article-categories><title>The Logic and Pathways of Stringent Financial Regulation Empowering Corporate ESG Practices</title><url>https://artdesignp.com/journal/SSR/7/10/10.26689/ssr.v7i10.12714</url><author>GuanXiaoyan,ZhangPengqian,ZhangNingning</author><pub-date pub-type="publication-year"><year>2025</year></pub-date><volume>7</volume><issue>10</issue><history><date date-type="pub"><published-time>2025-10-29</published-time></date></history><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.</abstract><keywords/></article-meta></front><body/><back><ref-list><ref id="B1" content-type="article"><label>1</label><element-citation publication-type="journal"><p>Allen F, Qian Y, Tu G, et al., 2019, Entrusted Loans: A Close Look at China’s Shadow Banking System. Journal of Financial Economics, 133(1): 18–41.</p><pub-id pub-id-type="doi"/></element-citation></ref><ref id="B2" content-type="article"><label>2</label><element-citation publication-type="journal"><p>Stroebel J, Wurgler J, 2021, What do you Think about Climate Finance? Journal of Financial Economics, 142(2): 487–498.</p><pub-id pub-id-type="doi"/></element-citation></ref><ref id="B3" content-type="article"><label>3</label><element-citation publication-type="journal"><p>Chen Y, Ren Y, Narayan S, et al., 2024, Does Climate Risk Impact Firms’ ESG Performance? Evidence from China. Economic Analysis and Policy, 2024(81): 683–695.</p><pub-id pub-id-type="doi"/></element-citation></ref><ref id="B4" content-type="article"><label>4</label><element-citation publication-type="journal"><p>Ren Y, Hu G, Wan Q, 2025, Can Fair Competition Enhance Corporate ESG Performance? Evidence from a Quasi-natural Experiment of China’s Fair Competition Review System. Finance Research Letters, 2025(74):106754.</p><pub-id pub-id-type="doi"/></element-citation></ref><ref id="B5" content-type="article"><label>5</label><element-citation publication-type="journal"><p>Yu Z, Xiao X, Ge G, 2024, Shadow Banking Regulation and the Stock Price Synchronicity—A Quasi-natural Experiment Based on China’s New Asset Management Regulation. Borsa Istanbul Review, 24(1): 118–136.</p><pub-id pub-id-type="doi"/></element-citation></ref></ref-list></back></article>
