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Do securities firms' shareholdings improve corporate ESG Performance? Evidence from China listed companies

Author

Listed:
  • Huang, Gan
  • Cheng, Juan
  • Zheng, Shengqi

Abstract

This paper examines the impact of securities firms' shareholdings on corporate ESG performance and the underlying mechanisms, using a sample of Chinese A-share listed companies from 2011 to 2019. The findings indicate that securities firms' shareholdings significantly improve ESG performance, with robustness tests supporting this conclusion. Further analysis shows that securities firms improve ESG performance by enhancing information transparency and strengthening internal controls in investee companies. Driven by profit motives, securities firms with shareholdings leverage ESG performance to ease financial constraints and enhance future stock returns.

Suggested Citation

  • Huang, Gan & Cheng, Juan & Zheng, Shengqi, 2025. "Do securities firms' shareholdings improve corporate ESG Performance? Evidence from China listed companies," Finance Research Letters, Elsevier, vol. 84(C).
    • Handle: RePEc:eee:finlet:v:84:y:2025:i:c:s1544612325010554
    DOI: 10.1016/j.frl.2025.107797
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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