ESG performance and firm misconduct: Evidence from R&D manipulation

Mengtao Chen

Economics Letters, 2024, vol. 237, issue C

Abstract: This study examines the impact of ESG on firm R&D manipulation behaviors by using the panel dataset from 2010 to 2022 in China. The empirical results find that better ESG performance significantly curbs firms' R&D manipulation behavior, and this finding is robust to a set of tests. Mechanism analysis indicates that ESG mitigates R&D manipulation through information effect, governance effect, and resource effect. Expanded analysis shows that ESG plays a complementary role both with internal and external controls in mitigating R&D manipulation.

Keywords: ESG; R&D manipulation; Information effect; Governance effect; Resource effect (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:237:y:2024:i:c:s0165176524001514

DOI: 10.1016/j.econlet.2024.111668

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