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ESG performance and investment efficiency

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  • Lian, Yuanqiang
  • Weng, Xiaowen

Abstract

This paper selects China's A-share listed companies from 2010 to 2022 as a research sample to explore the impact of corporate environmental, social, and governance (ESG) performance on investment efficiency and the mechanism of its role. The findings show that ESG performance can significantly reduce performance volatility and thus improve corporate investment efficiency; ESG performance can alleviate corporate inefficient investment by enhancing market attention.

Suggested Citation

  • Lian, Yuanqiang & Weng, Xiaowen, 2024. "ESG performance and investment efficiency," Finance Research Letters, Elsevier, vol. 62(PA).
    • Handle: RePEc:eee:finlet:v:62:y:2024:i:pa:s1544612324001144
    DOI: 10.1016/j.frl.2024.105084
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    References listed on IDEAS

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    Cited by:

    1. Mo Bai & Weixuan Wang, 2024. "Role of green bonds in developing ESG projects in Eastern provinces of China," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-8, December.
    2. Zhou, Gang & Bahn, Gwonsoo & Lao, Jian & Zhang, Yuan, 2024. "COP28 targets for mobilizing private investment in fossil fuels extraction industry to cope with the climate change," Resources Policy, Elsevier, vol. 97(C).
    3. Tang, Yiding & Qiao, Xingzhi & Chen, He, 2024. "ESG performance and investment expansion: Evidence from Chinese listed firms," Finance Research Letters, Elsevier, vol. 69(PA).
    4. Linan Wang & Rixin Li & Ruotong Zhao, 2025. "The Impact of Corporate ESG Performance on Regional Energy Efficiency in China from the Perspective of Green Development," Sustainability, MDPI, vol. 17(6), pages 1-22, March.
    5. Rayed Obaid Hammoud Alobaid & Ameen Qasem & Adel Ali Al-Qadasi, 2024. "Corporate Social Responsibility, Ownership Structure, and Firm Investment Efficiency: Evidence from the Saudi Stock Market," Sustainability, MDPI, vol. 16(15), pages 1-25, August.
    6. Li, Yue & Zhao, Xiaoxia & Yang, Xinfang, 2025. "ESG performance and corporate environmental investment: Incentive or inhibition?," Finance Research Letters, Elsevier, vol. 75(C).
    7. Sun, Xian & Xiong, Xiaoyan, 2025. "ESG performance and corporate innovation," Research in International Business and Finance, Elsevier, vol. 76(C).
    8. Lin, Yuya & Li, Shoubo, 2025. "Supply chain resilience, ESG performance, and corporate growth," International Review of Economics & Finance, Elsevier, vol. 97(C).

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