The impact of introducing strategic investors on corporate ESG performance—Empirical evidence from private placements in China

Jia Liu, Yu Jin and Chengkai Xu

Finance Research Letters, 2024, vol. 70, issue C

Abstract: Based on the data of A-share listed companies from 2009 to 2019, this paper explores the impact of introducing strategic investors on corporate ESG performance using the DID method. The results show that the introduction of strategic investors can enhance corporate ESG performance; two impact mechanisms involving internal governance and financing constraints are verified. The effect of introducing strategic investors on corporate ESG performance is more obvious in private enterprises and firms with better equity checks and balances. In addition, corporate ESG performance has an enhancing effect on corporate stock returns, the introduction of strategic investors can deepen this effect.

Keywords: Strategic investors; corporate ESG performance; Financing constraints; Internal governance (search for similar items in EconPapers)
JEL-codes: L25 M14 M41 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:70:y:2024:i:c:s1544612324013266

DOI: 10.1016/j.frl.2024.106297

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