Visuals Speak Louder Than Words: The Financing Effect of ESG Disclosure Visualization
研究了ESG报告的可视化设计（如图表使用）如何降低企业融资成本，发现可视化程度越高、报告越简洁，融资成本越低，且信息传递渠道起中介作用。
ABSTRACT Environmental, social, and governance (ESG) disclosure has become a strategic instrument for firms seeking sustainable development and long‐term value. Unlike prior literature that focus on the ESG disclosure, this paper investigates how ESG report design (i.e., visualization and report length) affects corporate financing costs. Theoretically, we formally incorporate visualization and length into an ESG asset‐pricing framework, establishing a novel link between disclosure design and cost of capital. Empirically, using a sample of Chinese listed firms from 2006 to 2024, we construct a composite visualization index based on color‐use metrics. We find that the visualization of ESG report significantly reduces financing costs, whereas longer reports are associated with higher financing costs. The mechanism tests show that information transmission channels, including information transmission intermediaries, quality, and efficiency, play a potential mediating role. Heterogeneity analyses indicate that the financing effects are stronger for firms with superior internal governance and under more intensive external supervision. Overall, our findings reveal that ESG report design carries measurable financial value, and operates as an effective market signal when firms and investors are in an environment with high information credibility.