The effect of economic growth target constraints on ESG

Shijie Li and En Xie

Applied Economics Letters, 2024, vol. 31, issue 18, 1921-1924

Abstract: The economy-based growth governance of local government departments significantly influences the strategic behaviour of firms in their jurisdictions. We mainly explore how local economic growth targets affect ESG transformation. Results indicate that the higher the local economic growth target is set, the lower the level of ESG transformation of companies is. Additionally, the inhibitory effect of local economic goals on ESG in State-owned enterprises has been significantly higher than that in non-SOEs.

Date: 2024
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DOI: 10.1080/13504851.2023.2208826

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