 The spillover effect of customers' ESG to suppliersJinghua Tang, Xiaoming Wang and Qigui Liu Pacific-Basin Finance Journal, 2023, vol. 78, issue C Abstract: Using a sample of Chinese listed firms, this study investigates how customers' ESG performance has influence on suppliers' ESG. We document a positive spillover effect of customers' ESG to that of suppliers. Regarding the components of ESG, we show evidence that customers concern more about the environment and social performance of their suppliers instead of the corporate governance. In addition, the positive spillover effect of customers' ESG (E) is strengthened by the implementation of the double carbon policy. We also find a more pronounced spillover effect of customers' ESG when the suppliers have at least one foreign customer, face greater competition and locate in more marketized regions. Spillover effect is also documented in the ESG disclosure: when customers disclose ESG reports, suppliers tend to follow the trend in the subsequent year. Finally, both customers and suppliers benefit from the collaborative ESG efforts along the supply chain by achieving a better performance evidenced by reduction of discretionary expenses, increase of sales growth and improvement of Tobin's Q. Keywords: ESG; Supply chain; Spillover effect; Customers and suppliers; Double carbon policy (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:78:y:2023:i:c:s0927538x23000136 DOI: 10.1016/j.pacfin.2023.101947 Access Statistics for this article Pacific-Basin Finance Journal is currently edited by K. Chan and S. Ghon Rhee More articles in Pacific-Basin Finance Journal from Elsevier |
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