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Risk management and corporate ESG performance: The mediating effect of financial performance

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  • Ding, Liuqi
  • Cui, Zixuan
  • Li, Jiali

Abstract

This study utilizes a sample of A-share manufacturing companies listed in China from 2012 to 2022 to explore the intricate interplay between systemic risk, financial performance, and ESG (Environmental, Social, and Governance) performance. The findings reveal that a decrease in systemic risk positively influences corporate ESG performance with a notable lag of 1–2 periods, with financial performance serving as a pivotal mediator in this dynamic. However, within the heavy pollution industry, the enhancement of ESG performance through systemic risk reduction is observed to be comparatively muted.

Suggested Citation

  • Ding, Liuqi & Cui, Zixuan & Li, Jiali, 2024. "Risk management and corporate ESG performance: The mediating effect of financial performance," Finance Research Letters, Elsevier, vol. 69(PB).
    • Handle: RePEc:eee:finlet:v:69:y:2024:i:pb:s1544612324013035
    DOI: 10.1016/j.frl.2024.106274
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    References listed on IDEAS

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    1. Wang, Meixia & Liu, Li & Liang, Tongxin, 2025. "Does the ESG disclosure quality affect financial performance: Empirical evidence from Chinese energy-listed companies," Finance Research Letters, Elsevier, vol. 77(C).

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