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ESG performance and cross regional investment: Evidence from Chinese listed companies

Author

Listed:
  • Wang, Xuefeng
  • Tang, Man
  • Wenya, Lv
  • Xu, Lei

Abstract

Based on Chinese listed companies data from 2010 to 2022, this article investigates the relationship between corporate ESG performance and cross regional capital flows. We find that better ESG performance significantly promotes companies to establish subsidiaries across regions, but this effect is mainly reflected in non-state-owned enterprises and investment enterprises within the province. Further analysis suggests that the main reason for enterprises to promote cross regional investment may be that better ESG performance increases investor trust and alleviates financing constraints for enterprises. The conclusion of this article is of great significance in promoting cross regional capital flows and facilitating the integration of factor markets.

Suggested Citation

  • Wang, Xuefeng & Tang, Man & Wenya, Lv & Xu, Lei, 2025. "ESG performance and cross regional investment: Evidence from Chinese listed companies," Finance Research Letters, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:finlet:v:81:y:2025:i:c:s1544612325006993
    DOI: 10.1016/j.frl.2025.107439
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    References listed on IDEAS

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    1. Zhao, Wenqi & Toh, Moau Yong & Zhang, Yongmin, 2025. "The price of green justice: Environmental courts and cross-regional capital immobility," Finance Research Letters, Elsevier, vol. 85(PA).

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