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The governance of non-state shareholders and corporate ESG: Empirical evidence from China

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  • Tian, Zengrui
  • Zhu, Bingsheng
  • Lu, Yuzhong

Abstract

This study examines the relationship between non-state shareholder governance and the ESG performance of China's listed state-owned enterprises (SOEs) from 2009 to 2020. Through empirical analysis, we find a U-shaped relationship between the proportion of non-state shareholder ownership and ESG performance, which remains consistent after conducting multiple robustness tests. When examined dimensionally, this U-shaped relationship is primarily evident in the Environment and Governance dimensions. Furthermore, this relationship is more pronounced in firms with low financing constraints. Under high financial constraints, the relationship between non-state shareholder governance and ESG performance manifests as a negative linear pattern.

Suggested Citation

  • Tian, Zengrui & Zhu, Bingsheng & Lu, Yuzhong, 2023. "The governance of non-state shareholders and corporate ESG: Empirical evidence from China," Finance Research Letters, Elsevier, vol. 56(C).
    • Handle: RePEc:eee:finlet:v:56:y:2023:i:c:s1544612323005342
    DOI: 10.1016/j.frl.2023.104162
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    More about this item

    Keywords

    Mixed ownership reform; Non-state shareholder governance; ESG;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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