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Executives’ ESG cognition, external governance, and corporate green development

Author

Listed:
  • Zhang, Zhaoguo
  • Wang, Liuzhi
  • Zheng, Shengqi

Abstract

Using Chinese A-share listed companies in the Shanghai and Shenzhen stock exchanges from 2010 to 2022 as the research samples, this paper examines the impact of executives’ ESG cognition on corporate green development and the underlying mechanisms. The results show that executives’ ESG cognition can promote corporate green development, and external governance mechanisms such as government regulation, media supervision, and market competition have all played positive moderation roles in the relationship between executives’ ESG cognition and corporate green development. Further analysis indicates that the positive impact of executives’ ESG cognition on corporate green development is more significant in Non-State-Owned listed companies, in regions with higher pollution levels, and in industries with lower environmental sensitivity. These findings offer valuable insights for improving corporate external governance mechanisms, enhancing executives’ ESG cognition, and promoting corporate green development.

Suggested Citation

  • Zhang, Zhaoguo & Wang, Liuzhi & Zheng, Shengqi, 2025. "Executives’ ESG cognition, external governance, and corporate green development," Economic Analysis and Policy, Elsevier, vol. 87(C), pages 2458-2469.
    • Handle: RePEc:eee:ecanpo:v:87:y:2025:i:c:p:2458-2469
    DOI: 10.1016/j.eap.2025.08.035
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    Keywords

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    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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