IDEAS home Printed from https://ideas.repec.org/a/ajp/edwast/v9y2025i8p493-504id9326.html
   My bibliography  Save this article

The impact of environmental, social and governance on firm performance: The mediating role of green innovation

Author

Listed:
  • Fei Guo
  • Hazlina Abd. Kadir
  • Zunirah Binti Mohd Talib

Abstract

This study aims to investigate the impact of corporate environmental, social and governance (ESG) performance on financial performance (measured by ROA of return on total assets) and to examine the mediating role of green innovation (measured by the number of green patent applications). This paper constructs a research framework based on stakeholder theory and sustainable development theory, selects Chinese A-share listed companies as samples, and constructs a panel regression model for empirical analysis. The results of hypothesis testing show that: good ESG performance significantly enhances corporate ROA; corporate ESG performance positively promotes green innovation; green innovation positively affects ROA; and green innovation plays a partial mediating effect between ESG and ROA. The findings suggest that corporate fulfilment of ESG responsibilities can enhance economic efficiency by promoting green innovation, confirming the expectations of sustainable development and stakeholder theory, and providing empirical evidence for corporate sustainability strategies and government green policies.

Suggested Citation

  • Fei Guo & Hazlina Abd. Kadir & Zunirah Binti Mohd Talib, 2025. "The impact of environmental, social and governance on firm performance: The mediating role of green innovation," Edelweiss Applied Science and Technology, Learning Gate, vol. 9(8), pages 493-504.
    • Handle: RePEc:ajp:edwast:v:9:y:2025:i:8:p:493-504:id:9326
    as

    Download full text from publisher

    File URL: https://learning-gate.com/index.php/2576-8484/article/view/9326/3078
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ajp:edwast:v:9:y:2025:i:8:p:493-504:id:9326. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Melissa Fernandes (email available below). General contact details of provider: https://learning-gate.com/index.php/2576-8484/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.