A Study on the Positive Promotion Effect and Heterogeneity of Corporate Profit Margins on ESG Development
Fengming Tang ()
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Fengming Tang: Yanbian University
A chapter in Proceedings of the 2026 11th International Conference on Social Sciences and Economic Development (ICSSED 2026), 2026, pp 429-435 from Springer
Abstract:
Abstract Corporate profit margins serve as a crucial indicator for measuring a company's profitability and a key reference for strategic decision-making. Clarifying the impact of profit margins on a company’s ESG (Environmental, Social, and Governance) development helps enhance the efficiency of profit utilization and holds practical significance for the company's long-term growth. This study employs a two-way fixed effects model to examine the impact of corporate profit margins on ESG performance, utilizing ESG rating data from 2011 to 2024. The research findings reveal: Corporate profit margins significantly enhance ESG performance, a conclusion that remains robust after undergoing stability tests and other methodologies. This study highlights the crucial role of corporate profit margins in driving ESG performance, providing valuable insights for related research in this field. It also offers important policy implications for how different types of enterprises should allocate resources to support high-quality ESG development.
Keywords: Corporate profit margins; ESG; High-quality development (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6239-701-9_44
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DOI: 10.2991/978-94-6239-701-9_44
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