Effect of Esg Performance on Corporate Green Technology Innovation: The Mediating Role of Financial Constraints and Digital Transformation

WANG, HONG; ZHANG, YING; DAGESTANI, ABD ALWAHED; QING, LINGLI

doi:10.1142/s0217590823470124

Cited by 1 publication

(1 citation statement)

References 56 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This study uses a two-way fixed effects model controlling for industry and time; this model reduces the bias caused by industry and time characteristics and improves the accuracy of the results [63].…”

Section: Empirical Modelmentioning

confidence: 99%

The Effect of Environmental, Social, and Governance (ESG) Performance on Corporate Financial Performance in China: Based on the Perspective of Innovation and Financial Constraints

Xu,

Zhu

2024

Sustainability

View full text Add to dashboard Cite

This paper analyzes the effects of Environmental, Social, and Governance (ESG) performance on corporate financial performance (CFP), enriching the research on the intrinsic mechanism between ESG and financial performance in developing countries. This study uses a data sample of A-share listed companies in Shanghai and Shenzhen, China from 2009 to 2021, and adopts a two-way fixed effects model research methodology with fixed time and industries to explore the relationship and intrinsic mechanism between the two in conjunction with relevant basic theories. The study findings indicate that ESG performance exerts a positive influence on CFP by fostering corporate innovation. Corporations with good ESG performance in the long term may be more conducive to good CFP. When corporations face financial constraints, the role of ESG performance in enhancing CFP weakens. Heterogeneity analyses indicate that ESG performance contributes more to the CFP of non-state-owned enterprises (non-SOEs). The negative moderating influence of financial constraints is more pronounced in non-SOEs. Additionally, ESG performance promotes the improvement of CFP in non-heavy polluting corporates. This research study extends a scientific foundation for how corporates can improve CFP and increase market competitiveness.

show abstract

Section: Empirical Modelmentioning

confidence: 99%