Corporate Sustainability: The Impact of Environmental, Social, and Governance Performance on Corporate Development and Innovation

Defang Ma, Liangwei Li (), Yuxi Song, Mengkai Wang and Qiaowen Han
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Defang Ma: School of Management, Capital Normal University, Beijing 100048, China
Liangwei Li: School of Management, Capital Normal University, Beijing 100048, China
Yuxi Song: School of Economics and Management, Henan University of Technology, Zhengzhou 450007, China
Mengkai Wang: School of Business, Renmin University of China, Beijing 100872, China
Qiaowen Han: School of Management, Capital Normal University, Beijing 100048, China

Sustainability, 2023, vol. 15, issue 19, 1-16

Abstract: As a comprehensive concept that integrates the environment, society, and corporate governance, little is known about whether and how Esg affects firm development, as the concept of sustainable development is deepened and promoted. Therefore, the purpose of this paper is to investigate the impact of Esg performance on corporate development. This paper selects the data of A-share-listed companies from 2010 to 2020 as samples, utilizes the linear regression model to empirically study the impact mechanism of Esg performance on enterprise development, and considers transmission pathways. It is found that the development of high-technology firms is more significantly affected by Esg performance than the development of non-high-technology firms. It is further found that Esg performance can promote enterprise development by reducing financing constraints. Meanwhile, corporate innovation can enhance the promotion effect of Esg performance on corporate development. After the robustness tests of instrumental variables and the lagged effects, the research conclusions still hold.

Keywords: ecology; society; governance (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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