Scholarlink

<p>This study investigates the relationship between Environmental, Social, and Governance (ESG) performance and corporate financial outcomes among Chinese listed firms, focusing specifically on the moderating effect of local economic development levels. Employing a multivariate regression model with pooled Ordinary Least Squares (OLS) and utilizing thirteen indicators from the CSMAR and RESSET databases, the analysis establishes a significant positive correlation between overall ESG performance (and its sub-dimensions) and corporate performance. Crucially, the findings demonstrate that local economic development negatively moderates this relationship, notably weakening the positive influence of the Social and Governance dimensions. Two-stage Least Squares (2SLS) estimation, using industry-average ESG scores as instruments, confirmed a robust positive causal effect, particularly for the environmental and social pillars, which diminishes significantly in more economically developed regions. Theoretically, this research contributes to institutional and stakeholder theories by demonstrating how regional disparities shape the effectiveness of ESG practices. Practically, the results provide valuable, context-specific insights for policymakers and businesses, underscoring the necessity of integrating local economic conditions when designing and implementing sustainability frameworks.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

ESG practices and chinese corporate performance: does local economic development moderate this relationship?

  • 期刊论文

  • 发表日期：

    2026年1月31日

查看全文
  • Jinnan Sun,
  • Yu Gong,
  • Sujie Peng

摘要

This study investigates the relationship between Environmental, Social, and Governance (ESG) performance and corporate financial outcomes among Chinese listed firms, focusing specifically on the moderating effect of local economic development levels. Employing a multivariate regression model with pooled Ordinary Least Squares (OLS) and utilizing thirteen indicators from the CSMAR and RESSET databases, the analysis establishes a significant positive correlation between overall ESG performance (and its sub-dimensions) and corporate performance. Crucially, the findings demonstrate that local economic development negatively moderates this relationship, notably weakening the positive influence of the Social and Governance dimensions. Two-stage Least Squares (2SLS) estimation, using industry-average ESG scores as instruments, confirmed a robust positive causal effect, particularly for the environmental and social pillars, which diminishes significantly in more economically developed regions. Theoretically, this research contributes to institutional and stakeholder theories by demonstrating how regional disparities shape the effectiveness of ESG practices. Practically, the results provide valuable, context-specific insights for policymakers and businesses, underscoring the necessity of integrating local economic conditions when designing and implementing sustainability frameworks.