Does the absence of actual controllers affect corporate ESG performance? Evidence from Chinese listed companies

Zhiqiang Jia and Wei Zhang

Finance Research Letters, 2024, vol. 68, issue C

Abstract: This study explores the impact of the absence of actual controllers on corporate ESG performance using data from Chinese A-share listed companies from 2014 to 2022. Our findings reveal that the absence of actual controllers increases the corporate agency costs and financing constraints, thereby reducing its ESG performance. Furthermore, this effect is more pronounced in companies with low internal control quality and less analyst attention. Our results are robust and provide new insights into improving the regulation of companies without actual controllers to enhance their ESG performance.

Keywords: Absence of actual controllers; ESG performance; Agency costs; Financial constraints; Internal control; Analyst attention (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:68:y:2024:i:c:s1544612324009917

DOI: 10.1016/j.frl.2024.105961

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