Mixed-ownership reform of SOEs and ESG performance: Evidence from China

Liu, Kai; Wang, Jiang; Liu, Liqun; Huang, Yingjun

doi:10.1016/j.eap.2023.10.016

Cited by 24 publications

(3 citation statements)

References 58 publications

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“…As China is in the nascent stage of sustainable financial investment, a more significant financial gap must exist for firms to shift from production based to environment based (Liu et al, 2023). At the same time, the study confirms that energy industrialization has a significant positive impact on carbon emissions in the short term, reducing environmental performance undertakings (Idowu et al, 2023).…”

Section: Nature Of Environmental Pollution In the Industrysupporting

confidence: 52%

“…Furthermore, based on the Company Law of the People's Republic of China, shareholders who individually or collectively hold more than 10% of the company's shares can request to convene an extraordinary shareholders' meeting within 2 months, or they can convene and preside over the shareholders' meeting on their own. Therefore, this study hypothesizes that private firms can participate in corporate management and decision-making more when their state-owned capital injection exceeds 10% of the total holding (Liu et al, 2023). The sample of private firms whose top 10 shareholders' state-owned capital holdings (State2) are more than 10% of the total holdings will take the value of 1.…”

Section: Core Explanatory Variablesmentioning

confidence: 99%

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Does state capital equity affect ESG performance of private firms?—based on the perspective of sustainable development of Chinese enterprises

Li,

Wang

2024

Front. Environ. Sci.

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Along with the intensification of global ecological problems, corporate environmental, social, and governance (ESG) issues have attracted extensive attention from the investment community, and solving these issues is crucial for sustainable development. However, little is known about the research on equity structure reform on corporate ESG performance, especially state-owned capital on private firms' ESG performance. To this end, we utilize the panel data of 1,589 privately listed firms in China from 2013 to 2021 to explore the impact of state-owned capital on the ESG performance of private firms. The findings suggest that state-owned capital significantly improves the ESG performance of private firms. In addition, the results of mechanism analysis indicate that state-owned capital stimulates ESG performance through the dual path of improving the mitigation of external financial constraint problems and internal control environment problems. We also find that firms' external environmental shocks enhance the extent to which state capital injection into private firms enhances ESG performance, and these external environmental shocks include the strength of environmental regulation in the region, whether the firms' attribute is that of heavily polluting industries, and the strength of external media attention. In summary, our findings support the conjecture that state capital injection into private firms will be followed by enhanced ESG performance, and the external environment is a factor that influences this process. Our study may provide lessons for the sustainable development of private firms and dig deeper into the internal root causes and external shock factors.

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Section: Nature Of Environmental Pollution In the Industrysupporting

confidence: 52%

Section: Core Explanatory Variablesmentioning

confidence: 99%

Does state capital equity affect ESG performance of private firms?—based on the perspective of sustainable development of Chinese enterprises

Li,

Wang

2024

Front. Environ. Sci.

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“…It encourages stakeholder protection and social responsibility [7] and gains reputational benefits [8][9][10][11]. In addition, it helps reduce market risk and supports society in addressing pressing challenges, such as climate change and income inequality [12][13][14][15][16].…”

Section: Introductionmentioning

confidence: 99%

Sustainable Pathways: ESG Disclosure Performance and Optimization in China

Zhou,

Nian

2024

Sustainability

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Environmental, Social, and Governance (ESG) disclosures are pivotal in steering listed companies toward a balanced trajectory of economic efficiency and environmental/social accountability. Disclosure of ESG information can enhance consumer confidence, create shareholder value, and promote sustainable corporate development. Based on the ESG information disclosure data of Chinese listed companies, this study investigates and empirically analyzes the frequency, content, and quality of ESG information disclosure by Chinese listed companies using a mixed-methodological research approach combining qualitative and quantitative approaches. The findings indicate a low and unreliable frequency of ESG disclosure among Chinese listed companies, with a predominant focus on descriptive content primarily in the “E” and “G” dimensions, while neglecting information disclosure in the “S” dimension. The results of subgroup analyses show that industry classification and the regional economic development level do not increase the disclosure rate. Although the nature of ownership, industry classification, and the level of regional economic development can contribute to improving the overall quality of disclosure, there are differences in the “E”, “S”, and “G” dimensions. In addition, mandatory disclosure requirements can improve disclosure quality, but some differences in the “G” dimension are not significant. The findings provide empirical support for improving the ESG disclosure performance of Chinese listed companies to achieve the “dual-carbon” goal.

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Strategic choices in going public: ESG performance implications in China

Cheng,

Gao,

Liu

et al. 2024

Bus Strat Env

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Choices in going public are important business strategies that can influence Environmental, Social and Governance (ESG) performance through varying levels of regulatory scrutiny, investor expectations, governance improvements, public attention and strategic focus. We investigate the impact of listing approach on ESG performance in China over the period of 2009 to 2022, by comparing the ESG performance of firms going public via initial public offering (IPO) versus reverse merger (RM). Consistent with our institutional, legitimacy and averse‐selection hypotheses, we find that RM firms exhibit significantly lower ESG performance compared with IPO firms, a difference we attribute to the greater performance pressure, higher litigation risk, greater financing constraints and poorer internal controls experienced by RM firms. These factors likely reduce management's willingness to invest in and improve ESG outcomes. However, as time passed, the discrepancy in ESG performance between RM firms and IPO firms gradually diminished. Additionally, the nature of state ownership and reduced competitive pressure in the industry also serve to mitigate the negative impact of RMs on firms' ESG performance. To promote sustainable development, going public via IPO offers a better business strategy, creating shared value among a broader range of stakeholders, including socially responsible investors, advocacy groups and regulators.

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Mixed-ownership reform of SOEs and ESG performance: Evidence from China

Cited by 24 publications

References 58 publications

Does state capital equity affect ESG performance of private firms?—based on the perspective of sustainable development of Chinese enterprises

Does state capital equity affect ESG performance of private firms?—based on the perspective of sustainable development of Chinese enterprises

Sustainable Pathways: ESG Disclosure Performance and Optimization in China

Strategic choices in going public: ESG performance implications in China

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