The Impact of Corporate ESG Performance on Green Innovation Efficiency —— Evidence from China
DOI:
https://doi.org/10.54097/jh245h90Keywords:
ESG, green innovation, sustainable development.Abstract
Green innovation is essential for companies to meet their social obligations, drive industrial advancement, and improve market competitiveness. Good environmental, social, and governance (ESG) performance may increase corporate value and reputation, open up new business opportunities, lower risks, and drive green innovation. This study examines how ESG impacts corporate green innovation efficiency using sustainable development theory and stakeholder theory with a sample of Chinese A-share listed enterprises. Using a high-dimensional fixed-effects regression model, this paper investigates the impact of firms' ESG performance on green innovation efficiency and examines the mediating roles of corporate financial constraints and corporate social responsibility.. The findings indicate that strong corporate ESG performance improves corporate green innovation efficiency. Financing restrictions and corporate social responsibility also have a notable impact on the advancement of corporate green innovation efficiency. The findings of this paper support enhancing green innovation efficiency and achieving sustainable development.
Downloads
References
Tan, Yafei, and Zhaohui Zhu. “The Effect of ESG Rating Events on Corporate Green Innovation in China: The Mediating Role of Financial Constraints and Managers’ Environmental Awareness.” Technology in Society, vol. 68, Feb. 2022, p. 101906.
Xu, J., Liu, F. and Shang, Y. (2021), "R&D investment, ESG performance and green innovation performance: evidence from China", Kybernetes, Vol. 50 No. 3, pp. 737-756.
Ansong, Abraham. “Corporate Social Responsibility and Access to Finance among Ghanaian SMEs: The Role of Stakeholder Engagement.” Cogent Business & Management, vol. 4, no. 1, 28 Sept. 2017.
Reber, Beat, et al. “ESG Disclosure and Idiosyncratic Risk in Initial Public Offerings.” Journal of Business Ethics, vol. 179, no. 3, 1 June 2021, pp. 867–886.
Zheng, Mingbo, et al. “Does Environmental, Social, and Governance Performance Move Together with Corporate Green Innovation in China?”Business Strategy and the Environment, vol. 32, no. 4, 18 July 2022, pp. 1670–1679.
Liu, Heying, and Chan Lyu. “Can ESG Ratings Stimulate Corporate Green Innovation? Evidence from China.” Sustainability, vol. 14, no. 19, 1 Jan. 2022, p. 12516.
Zhang, Jing, and Ziyang Liu. “Study on the Impact of Corporate ESG Performance on Green Innovation Performance—Evidence from Listed Companies in China A-Shares.” Sustainability, vol. 15, no. 20, 11 Oct. 2023, pp. 14750–14750.
Yang, Cunyi, et al. “ESG Ratings and Green Innovation: A U‐Shaped Journey towards Sustainable Development.” Business Strategy and the Environment, 29 Jan. 2024, pp.1-22.
Zhou, Jian, et al. “ESG Rating Divergence and Corporate Green Innovation.” Business Strategy and the Environment, 1 Dec. 2023.
Zhai, Yuming, et al. “Does Better Environmental, Social, and Governance Induce Better Corporate Green Innovation: The Mediating Role of Financing Constraints.” Corporate Social Responsibility and Environmental Management, vol. 29, no. 5, 20 May 2022, pp. 1513–1526.
Uyar, Ali, et al. “ESG Performance and CSR Awards: Does Consistency Matter?” Finance Research Letters, vol. 50, Dec 2022, p. 103276.
Gillan, Stuart L., et al. “Firms and Social Responsibility: A Review of ESG and CSR Research in Corporate Finance.” Journal of Corporate Finance, vol. 66, Feb 2021, p. 101889.
Yao Lijie, Zhou Ying, “Managerial Ability, Innovation Ability and Innovation Efficiency.” Accounting Research, no.7, June 2018, pp.70-77. [in Chinese]
Fang Xianming, Hu Ding, “Corporate ESG Performance and Innovation: Empirical Evidence from A-share Listed Companies.” Economic Research Journal, vol. 58, no.2, Feb 2023, pp.91-106. [in Chinese]
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
