Government Environmental Information Regulation and Corporate ESG Performance

Xianghua Li, Ying Hu, Xiaodi Guo and Min Wang ()
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Xianghua Li: Business School, Central South University, Changsha 410083, China
Ying Hu: Business School, Central South University, Changsha 410083, China
Xiaodi Guo: Business School, Central South University, Changsha 410083, China
Min Wang: Audit Division, Central South University, Changsha 410083, China

Sustainability, 2024, vol. 16, issue 18, 1-20

Abstract: China’s environmental, social, and governance (ESG) actions are driven by multiple factors, among which the government is an indispensable key player. This paper empirically examines the impact of government environmental information regulation (GEIR) on corporate ESG performance using a sample of Chinese A-share listed companies in heavily polluting industries from 2011 to 2021, with a GEIR in 2014 as an exogenous shock. GEIR is found to significantly improve corporate ESG performance, which is mainly reflected in the environmental and social dimensions. Moreover, improvements in the quality of corporate information disclosure and the efficiency of green innovation are found to be the main paths through which GEIR enhances corporate ESG performance. Further research shows that the enhancement effect of GEIR is more obvious in firms with low political relevance, high investor attention, and low marketization in the region in which they are located. This work enriches the research on GEIR and corporate ESG performance and provides some references for promoting the government to play a key role in China’s ESG initiatives.

Keywords: government environmental information regulation; corporate ESG performance; information disclosure quality; green innovation efficiency (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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