The impact of corporate environmental responsibility on corporate performance of Chinese firms

Haomin Zhang, Aizhen Chen, Jiazheng Duan and Haibo Ye

International Review of Financial Analysis, 2025, vol. 104, issue PB

Abstract: Prior research predominantly investigates the unidimensional effects of corporate ecological management, often overlooking the multifaceted nature of corporate performance, which encompasses not only financial but also environmental dimensions. Grounded in the theories of sustainable development, corporate social responsibility, and stakeholder engagement, this paper examines listed firms in China to empirically analyze the mechanisms through which corporate environmental responsibility (CER) influences corporate performance. The empirical results indicate that CER negatively impacts short-term financial performance, while exerting a positive influence on both long-term financial performance and environmental performance. Furthermore, green technological innovation is found to have no significant effect on short-term financial performance, yet partially mediates the relationship between CER and both long-term financial and environmental performance. In addition, while green investment does not significantly moderate the relationship between CER and financial performance, it positively moderates the relationship between CER and environmental performance.

Keywords: Corporate environmental responsibility; Corporate performance; Green technological innovation; Green investment (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:104:y:2025:i:pb:s1057521925004363

DOI: 10.1016/j.irfa.2025.104349

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