Does ESG Performance Promote High-Quality Development of Enterprises in China? The Mediating Role of Innovation Input

Ge Ge, Xiang Xiao, Zhenzhu Li and Qinghui Dai
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Ge Ge: School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China
Xiang Xiao: School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China
Zhenzhu Li: School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China
Qinghui Dai: School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China

Sustainability, 2022, vol. 14, issue 7, 1-24

Abstract: Environmental, Social and Governance (ESG) concept has internal consistency with the high-quality development of China’s economy theoretically, and implementing ESG concept is an important way to achieve sustainable economic development. However, whether ESG performance can promote the high-quality development from the perspective of micro enterprises is rarely studied. Thus, we explore the impact and mechanism of ESG performance on enterprises’ high-quality development. The empirical results indicate that good ESG performance is conducive to promoting high-quality development of enterprises. Environmental performance and social performance can promote high-quality development of enterprises more than corporate governance performance. The mechanism results show that innovation input plays a medicating role between ESG performance and enterprises’ high-quality development. The additional analysis suggest that the promoting effect is more obvious in state-owned enterprises, environmentally sensitive enterprises and enterprises with less financing constraints. This study has enlightenment significance for enterprises to value ESG performance and government departments to formulate relevant policies.

Keywords: ESG; high-quality development; innovation input; sustainable development (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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