Research on the Impact of ESG Performance on Corporate Risk Taking

Authors

  • Weiru Zhang
  • Zhiyu An

DOI:

https://doi.org/10.54097/th549p95

Keywords:

ESG performance, enterprise risk-taking, financial constraint, CEO overconfidence.

Abstract

This paper presents the findings of an empirical investigation into the relationship between improvements in ESG performance and the level of enterprise risk-taking. The analysis is based on a sample of Shanghai and Shenzhen A-share listed companies from 2010 to 2022. The results demonstrate that an enhancement in ESG performance markedly diminishes the extent of corporate risk-taking. The impact mechanism test illustrates that the advancement of ESG performance will curtail the executive's overconfidence, thereby impeding the enterprises risk-taking. In this context, the financing constraint exerts a "masking effect", whereby the inhibition effect of CEO overconfidence outweighs the promotion effect of financing constraints.

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References

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Published

25-11-2024

How to Cite

Zhang, W., & An, Z. (2024). Research on the Impact of ESG Performance on Corporate Risk Taking. Highlights in Business, Economics and Management, 44, 75-86. https://doi.org/10.54097/th549p95