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Dance to government’s tune: Firms’ ESG information catering behaviors and government subsidies

Author

Listed:
  • Feng, Han
  • Ma, Chaoqun
  • Chen, Yiqing
  • Mi, Xianhua

Abstract

Using the dataset of China’s listed firms from 2012 to 2023, this study proposes a novel index to evaluate firms’ ESG information catering behavior from the perspective of alignment between firms’ ESG information focus and government ESG focus, and examines the impacts of such information catering on the government perceptions. The empirical results demonstrate that firms’ ESG information catering degree varies across years and industries. Firms with poor ESG performance, mature firms and non-state-owned firms are more inclined to have a high ESG information catering degree. Moreover, disclosing ESG information that aligns with government’s ESG focus can increase firms’ government subsidies, while the benefits of ESG information catering are alleviated by firms’ poor ESG performance and vague ESG information. Overall, the empirical evidence highlights the important role of ESG information catering behaviors in shaping government perceptions of firms.

Suggested Citation

  • Feng, Han & Ma, Chaoqun & Chen, Yiqing & Mi, Xianhua, 2025. "Dance to government’s tune: Firms’ ESG information catering behaviors and government subsidies," Finance Research Letters, Elsevier, vol. 85(PD).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pd:s1544612325014217
    DOI: 10.1016/j.frl.2025.108166
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