ESG performance, investor attention, and company reputation: Threshold model analysis based on panel data from listed companies in China

Meng, Tiantian; Dato Haji Yahya, Mohamed Hisham; Ashhari, Zariyawati Mohd; Yu, Danni

doi:10.1016/j.heliyon.2023.e20974

Cited by 24 publications

(3 citation statements)

References 60 publications

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“…One of the issues that ESG focuses on is the environment, which has now received the attention of most studies [ 5 , 6 ]. Furthermore, prior research has demonstrated that a well-established ESG framework can enhance firms’ reputation and image in the market [ 7 ], further release positive signals, alleviate information asymmetry [ 8 ], promote stock liquidity [ 8 , 9 ], and enhance firms’ financial performance [ 10 ], thus enhancing the competitive advantage of enterprises in the market and promoting their long-term development. The economic effect of corporate ESG performance enhancement is not limited to financial performance, but also has an impact on corporate human capital.…”

Section: Introductionmentioning

confidence: 99%

“…The possible marginal contributions of this paper compared to the existing literature are as follows. Firstly, the existing body of research predominantly concentrates on the economic effects of corporate ESG scores [ 4 , 7 ], with little attention given to the study of its driving factors. In contrast, this paper takes the initiative to investigate the driving factors from a macro-institutional perspective, incorporating the social credit environment as an informal institution into the research framework of factors driving corporate ESG scores.…”

Section: Introductionmentioning

confidence: 99%

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Can the improvement of the social credit environment enhance corporate ESG scores?

Han,

Chen

2024

PLoS ONE

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The ESG scores of corporations is a crucial manifestation of their long-term strategic goals, attracting significant attention from society. The impact and underlying mechanisms of the enhancement of the social credit atmosphere on the ESG performance of corporations remain unclear. This study utilizes a sample of Chinese A-share listed companies from 2010 to 2020, employing the Difference-in-Differences (DID) methodology to investigate the relationship of the establishment of the social credit system on company ESG scores. This study reveals that the establishment of the social credit system significantly advances corporate ESG scores. Heterogeneity results indicate that the positive effect is more pronounced in state-owned enterprises or companies having substantial institutional shareholding. Furthermore, the implementation of the social credit system amplifies corporate ESG scores through three key mechanisms: fostering green technology innovation, cultivating ethical and moral corporate cultures, and optimizing the overall business environment. This paper enriches the informal institutional researches about the driving factors of corporate ESG scores, providing valuable insights for policymakers and corporate decision-makers.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Can the improvement of the social credit environment enhance corporate ESG scores?

Han,

Chen

2024

PLoS ONE

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“…For instance, [6,[10][11][12] found that ESG performance has a positive impact on firm value, but the relationship between ESG and firm value is also affected by firm characteristics, such as size and industry. While others [13][14][15] argued that the relationship between ESG score and firm value is not only affected by firm characteristics but also by reverse causality, meaning that a higher market value can incentivize firms to embrace ESG practices.…”

Section: Introductionmentioning

confidence: 99%

Analyzing the Dynamic Relationship Between ESG Scores and Firm Value in Chinese Listed Companies: Insights from Cross-Lagged Analysis

Wedajo,

Bhat,

Khan

et al. 2023

Preprint

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The relationship between a company's Environment, Social and Governance (ESG) scores and market value dynamics has been the focus of extensive research. Our study aimed to provide insights into this relationship and its implications for Chinese investors. We used a general Cross-lagged panel model to analyze data from 652 Chinese-listed companies from 2013 to 2019. Our findings indicate that ESG scores have a long-term impact on market value, with a consistently positive correlation between the two. We also discovered that Chinese investors consider ESG factors when evaluating a company's financial health. Companies that prioritize ESG factors are more likely to attract investment. Moreover, the diffusion of ESG information happens slowly, and past ESG performance influences future ESG performance. Thus, maintaining good ESG performance is crucial for long-term sustainability and success. Overall, our study highlights the importance of considering ESG factors when evaluating financial health and making investment decisions, providing valuable insights for firms and investors alike.

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Does ESG Integration Enhance Financial Performance in Emerging Economies? A Systematic Review of Brics

Cherian,

Seranmadevi

2024

Studies in Big Data

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ESG performance, investor attention, and company reputation: Threshold model analysis based on panel data from listed companies in China

Cited by 24 publications

References 60 publications

Can the improvement of the social credit environment enhance corporate ESG scores?

Can the improvement of the social credit environment enhance corporate ESG scores?

Analyzing the Dynamic Relationship Between ESG Scores and Firm Value in Chinese Listed Companies: Insights from Cross-Lagged Analysis

Does ESG Integration Enhance Financial Performance in Emerging Economies? A Systematic Review of Brics

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