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Green investors and corporate ESG performance: Evidence from China

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  • Feng, Jingyu
  • Yuan, Ying

Abstract

From a green perspective, this paper examines the impact of green investors on corporate ESG performance and then investigates how the entry of green investors affects corporate ESG performance based on data from A-share-listed companies in China between 2009 and 2022. The findings suggest that the entry of green investors enhances corporate ESG performance by addressing internal financing constraints and external public environmental concerns. Furthermore, the positive influence of green investors on ESG performance is markedly pronounced in non-state-owned enterprises, highly competitive enterprises and enterprises situated in the Northern region of China.

Suggested Citation

  • Feng, Jingyu & Yuan, Ying, 2024. "Green investors and corporate ESG performance: Evidence from China," Finance Research Letters, Elsevier, vol. 60(C).
    • Handle: RePEc:eee:finlet:v:60:y:2024:i:c:s1544612323012643
    DOI: 10.1016/j.frl.2023.104892
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    References listed on IDEAS

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    6. Shucheng Nie & Guixia Wang, 2025. "The Impact of Government-Led Green Certification on Enterprise Green Transformation—Evidence from Green Factory Recognition," Sustainability, MDPI, vol. 17(5), pages 1-20, March.
    7. Yang, Xinglong & Chen, Zhang-HangJian & Feng, Yujia & Gao, Xiang & Koedijk, Kees G., 2024. "Corporate SDG performance and investor trading behavior," Finance Research Letters, Elsevier, vol. 66(C).
    8. Jiang, Yong & Ding, Xiao & Ren, Yi-Shuai & Kong, Xiaolin & Baltas, Konstantinos, 2024. "Low-carbon city pilot policy and green investors entry," Finance Research Letters, Elsevier, vol. 64(C).
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    More about this item

    Keywords

    Green investors; Corporate ESG performance; Internal financing constraints; External public environmental concerns;
    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
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

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