Boards' green background and corporate ESG

Liangyu Chen, Alkut Yusuyin, Renyi Zhang and Yongmin Zhang

International Review of Financial Analysis, 2025, vol. 105, issue C

Abstract: The extant literature has focused primarily on how ESG performance affects corporate performance, with little research on the determinants influencing ESG performance. Using data from Chinese A-share listed companies, this paper analyzes the impact of board's environmental backgrounds on corporate ESG levels. The study results indicate that a board with an environmental background can enhance a company's ESG performance. This positive effect is more pronounced in state-owned enterprises and non-high-pollution enterprises. Further mechanism tests reveal that boards with an environmental background can increase ESG levels by attracting more green investments and promoting corporate green technology innovation. Our research has practical implications for company board hiring priority and for government environmental policies to support sustainable development.

Keywords: Environmental background; ESG level; Green investment; Green technology innovation; Sustainable development (search for similar items in EconPapers)
JEL-codes: G39 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:105:y:2025:i:c:s1057521925004739

DOI: 10.1016/j.irfa.2025.104386

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