ESG performance and investment expansion: Evidence from Chinese listed firms

Yiding Tang, Xingzhi Qiao and He Chen

Finance Research Letters, 2024, vol. 69, issue PA

Abstract: Using the listed company datasets from 2010 – 2022, this paper explores how environment, society, and governance (ESG) performance affects enterprises’ investment expansion. By employing a series of forefront empirical methods, our study finds that enterprises with better ESG performance have higher propensity of investment expansion. The conclusion shows robustness when considering the endogeneity problem and in robustness tests. Additionally, we explore the dynamics of ESG's effects on investment expansion and the impacts from different pillars. Finally, we discuss the mechanism from the perspective of financing sources. This study provides insights for promoting the structural transformation of China's economy.

Keywords: ESG performance; Investment expansion; Financing sources (search for similar items in EconPapers)
JEL-codes: G30 M14 Q56 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:69:y:2024:i:pa:s1544612324011024

DOI: 10.1016/j.frl.2024.106072

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