Environmental and social governance performance and enterprise total factor productivity
Corresponding Author
Zhonghua Cheng
School of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing, China
Correspondence
Zhonghua Cheng, School of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing 210044, China
Email: [email protected]
Search for more papers by this authorLele Han
School of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing, China
Search for more papers by this authorCorresponding Author
Zhonghua Cheng
School of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing, China
Correspondence
Zhonghua Cheng, School of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing 210044, China
Email: [email protected]
Search for more papers by this authorLele Han
School of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing, China
Search for more papers by this authorAbstract
With the popularity of both green development and sustainable investment concepts, evaluation of environmental performance, social responsibility and corporate governance (ESG) is the way for enterprises to protect the environment and, at the same time, interact with stakeholders. This paper first analyses how ESG influences corporate total factor productivity (TFP), then, using A-share listed company data from 2009 to 2021, conducts an empirical test proving that ESG greatly boosts TFP. Examination of the intermediate mechanism reveals that ESG can improve TFP by raising R&D investment, enhancing the attention of stakeholders, and increasing internal control capabilities. The heterogeneity study shows that, for state-owned firms, non-polluting industries, and small-scale and low-market degree enterprises, ESG enhances TFP more. Further analysis indicates that ESG uncertainty and ESG catering behaviour will weaken the fostering impact, but environmental regulation has a beneficial regulatory role.
CONFLICT OF INTEREST STATEMENT
The authors declare no conflict of interest.
Open Research
DATA AVAILABILITY STATEMENT
The data that support the findings of this study are available on request from the corresponding author. The data are not publicly available due to privacy or ethical restrictions.
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