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Minimum wage level and corporate ESG performance

Author

Listed:
  • Zhang, Min
  • Wu, Dan
  • Huang, Gongcheng

Abstract

This paper explores the cost-effectiveness of minimum wage level and their relationship with corporate ESG performance from a theoretical perspective and empirically examines their impact on corporate ESG performance. The study finds that minimum wage level significantly promotes corporate ESG performance, even after considering endogeneity issues. Moreover, the impact of minimum wage level on corporate ESG performance varies across different geographical locations. The mechanism analysis reveals that minimum wage level primarily enhances corporate ESG performance by improving productivity.

Suggested Citation

  • Zhang, Min & Wu, Dan & Huang, Gongcheng, 2024. "Minimum wage level and corporate ESG performance," Finance Research Letters, Elsevier, vol. 67(PA).
    • Handle: RePEc:eee:finlet:v:67:y:2024:i:pa:s1544612324008134
    DOI: 10.1016/j.frl.2024.105783
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    References listed on IDEAS

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    1. Wang, Maolin & Lin, Huiting & Huang, Yehua & Lu, Huiyan, 2023. "Poverty alleviation and firm productivity: Evidence from China's minimum wage system," International Review of Financial Analysis, Elsevier, vol. 87(C).
    2. Kim, Kihun & Kim, Tae-Nyun, 2023. "CEO career concerns and ESG investments," Finance Research Letters, Elsevier, vol. 55(PA).
    3. Yao, Wenyun & Zhang, Yi & Ma, Jingwen & Cui, Guanghui, 2023. "Does environmental regulation affect capital-labor ratio of manufacturing enterprises: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 86(C).
    4. Zhao, Tianjiao & Chan, Kam C., 2023. "Corporate social network and corporate social responsibility: A perspective of interlocking directorates," International Review of Financial Analysis, Elsevier, vol. 88(C).
    5. Tan, Wenhao & Li, Xiang & Zhao, Jianfeng & Cao, Lin & Wang, Haolun, 2023. "Internal capital markets and employee wage: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 88(C).
    6. Xie, Qin & Li, Shuo, 2024. "Minimum wage and corporate OFDI," Finance Research Letters, Elsevier, vol. 61(C).
    7. Kong, Dongmin & Qin, Ni & Xiang, Junyi, 2021. "Minimum wage and entrepreneurship: Evidence from China," Journal of Economic Behavior & Organization, Elsevier, vol. 189(C), pages 320-336.
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    Cited by:

    1. Nguyen Huu Anh & Duong Thi Chi, 2025. "Nonlinear Effects of Inflation and Wage Policy on Firm Sustainable Growth in Vietnam," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 11(2), pages 250-269.

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