Green innovation and corporate ESG performance: Evidence from Chinese listed companies

Xiaojing Liu, Ningren Huang, Wunhong Su and Haiyan Zhou

International Review of Economics & Finance, 2024, vol. 95, issue C

Abstract: In recent years, corporate ESG performance has attracted widespread attention from the public and academic circles. However, there are currently few studies on the driving factors of corporate ESG performance, and most of them regard green innovation as a homogeneous variable when discussing the driving factors of corporate ESG performance. Therefore, this article will explore its impact on corporate ESG performance from the perspective of green innovation, using data from China's A-share listed companies from 2009 to 2021 to analyze how different types of green innovation will affect corporate ESG performance. The study found that both radical green innovation and progressive green innovation can positively promote corporate ESG performance. In addition, financing constraints weaken the positive relationship between the two types of green innovation and corporate ESG. Further research found that heavily polluting industries are more likely to choose lower-cost progressive green innovations. By virtue of their special resource advantages, state-owned enterprises can cope with financing constraints more easily than non-state-owned enterprises. In contrast, large-scale enterprises can carry out sufficient green innovation and are better able to maintain their competitive advantages. Moreover, green innovation can have a positive impact on environmental governance and social responsibility, but it is difficult to have a positive impact on corporate governance. The green image plays a partial mediating role between green innovation and corporate ESG performance. The research conclusions provide a reference for government departments to improve the construction of ESG systems and also provide a reference for enterprises to practice ESG responsibilities and improve their own ESG performance.

Keywords: Green innovation; Corporate ESG performance; Financing constraints; Sustainable development; China (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:95:y:2024:i:c:s1059056024004532

DOI: 10.1016/j.iref.2024.103461

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