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The accountability system for operation and investment and the sustainable development of state-owned enterprises: Evidence from ESG performance

Author

Listed:
  • Lun, Miaoxing
  • Fu, Yumei
  • Chen, Wenchuan
  • Liu, Zijian

Abstract

Based on the operating and investment accountability system for state-owned enterprises (SOEs), this paper empirically examines the impact of operating and investment accountability on the sustainable development capability of SOEs, using a sample of Chinese A-share listed companies from 2013 to 2021. We find that the operating and investment accountability system significantly enhances the sustainable development capability of SOEs, meaning their ESG performance shows clear improvement. Mechanism analysis reveals that the operating and investment accountability system primarily influences corporate sustainable development capability through promoting green innovation, improving investment efficiency, and reducing agency costs. Furthermore, sub-item tests conducted across the three dimensions of Environmental, Social, and Governance show that the operational and investment accountability system has a significant positive effect on all three dimensions. This paper extends the research on the influencing factors of corporate sustainable development capability and the economic consequences of the operating and investment accountability system, providing important insights for promoting high-quality corporate development, optimizing government regulatory measures, and advancing the modernization of governance capabilities and systems.

Suggested Citation

  • Lun, Miaoxing & Fu, Yumei & Chen, Wenchuan & Liu, Zijian, 2025. "The accountability system for operation and investment and the sustainable development of state-owned enterprises: Evidence from ESG performance," Finance Research Letters, Elsevier, vol. 85(PE).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pe:s1544612325014175
    DOI: 10.1016/j.frl.2025.108162
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    References listed on IDEAS

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