Abstract: Based on the dual realistic background of the rise of ESG concept and the government’s implementation of “deleveraging” policy, this paper analyzes how ESG responsibility fulfillment affects corporate leverage manipulation behavior from the perspectives of “governance effect” and “resource effect”. The results show that ESG responsibility fulfillment can effectively reduce corporate leverage manipulation, and this effect is more prominent in non-state-owned firms, firms implementing equity incentive and firms in highly market-oriented regions. The impact mechanism test shows that ESG responsibility fulfillment through the “governance effect” channel will suppress corporate leverage manipulation by strengthening internal control and reducing downside risk; in the “resource effect” channel, corporate leverage manipulation will be suppressed by alleviating financing constraints. The ESG split regression shows that the responsibility fulfillment of S and G dimensions has a greater inhibitory effect on leverage manipulation, while the responsibility fulfillment of E dimension plays a limited role. An analysis by the type of leverage manipulation shows that ESG responsibility fulfillment mainly inhibits the real debt of nominal stocks, but the inhibitory effect on off-balance sheet liabilities is not obvious. The analysis of economic consequences shows that after ESG responsibility fulfillment inhibits leverage manipulation, corporate value and corporate growth are effectively improved. The research conclusions provide a reference for clarifying the mechanism of how ESG responsibility fulfillment governs corporate leverage manipulation, and how to rely on ESG responsibility fulfillment to resolve enterprise debt crisis and promote high-quality economic development.

Key words: deleveraging, ESG responsibility fulfillment, leverage manipulation, debt concealment, high-quality development