Does ESG Performance Enhance Corporate Green Technological Innovation? Micro Evidence from Chinese-Listed Companies

Chenhui Lu, Caitian Wu, Linjie Feng, Jinghui Zhan, Yi Shi () and Huangxin Chen
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Chenhui Lu: Institute of Industrial Economics, Jinan University, Guangzhou 510632, China
Caitian Wu: School of Economics and Management, Quanzhou University of Information Engineering, Quanzhou 362000, China
Linjie Feng: Faculty of Humanities and Social Sciences, Macao Polytechnic University, Macao 999078, China
Jinghui Zhan: Faculty of Humanities and Social Sciences, Macao Polytechnic University, Macao 999078, China
Yi Shi: Faculty of Humanities and Social Sciences, Macao Polytechnic University, Macao 999078, China
Huangxin Chen: Faculty of Humanities and Social Sciences, Macao Polytechnic University, Macao 999078, China

Sustainability, 2025, vol. 17, issue 2, 1-25

Abstract: This study investigates the impact of Environmental, Social, and Governance (ESG) performance on the green technological innovation (GTI) of Chinese A-share-listed companies, using data from 2009 to 2022. The findings indicate that strong ESG performance significantly enhances GTI, with this effect being more pronounced in state-owned firms and non-high-tech sectors, demonstrating heterogeneity across firm types. Mechanism analysis reveals that ESG performance facilitates GTI by mitigating financing constraints and boosting R&D investments. Moreover, the study identifies a non-linear relationship, wherein the effect of ESG on GTI varies with firm size and environmental regulation intensity, as confirmed through a threshold model. This study not only deepens the theoretical framework linking corporate ESG performance with GTI but also uncovers the practical mechanisms through which ESG performance drives GTI, providing both practical insights and theoretical foundations for governments to formulate corporate green transition policies.

Keywords: corporate ESG performance; green technological innovation; R&D investment; financing constraints (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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