The Impact of ESG Performance on Corporate Investment Efficiency: Evidence from Chinese Agribusiness Companies

Anqi Ma, Yue Gao () and Lirong Xing ()
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Anqi Ma: School of Economics, Shandong University of Technology, Zibo 255000, China
Yue Gao: School of Economics, Shandong University of Technology, Zibo 255000, China
Lirong Xing: School of Economics, Shandong University of Technology, Zibo 255000, China

Sustainability, 2025, vol. 17, issue 16, 1-21

Abstract: This study conducts an empirical examination of the impact of ESG (Environmental, Social, and Corporate Governance) performance on corporate investment efficiency, utilizing fixed-effects and mediation-effects models with a sample of 125 listed agribusiness companies in China from 2013 to 2022. The results of the fixed-effects regression indicate that superior ESG performance can effectively enhance corporate investment efficiency. Furthermore, the results of the mediation-effects analysis unveil the underlying mechanism through which ESG performance contributes to investment efficiency: by reducing agency costs and alleviating financing constraints. Moreover, the heterogeneity analysis suggests that ESG performance promotes investment efficiency more significantly in low-competition and moderately competitive market environments. By contrast, its effect may be somewhat muted in highly competitive markets. The findings of this study indicate that agribusiness companies should integrate ESG strategies, increase information transparency disclosure, and refine the allocation and management of resources in their operations.

Keywords: ESG performance; investment efficiency; agribusiness companies; agency costs; financing constraints; China (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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