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Patient capital, green innovation bubble, and corporate ESG performance

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  • Suo, Wen
  • Qiao, Pengliang

Abstract

This paper investigates the impact of patient capital on corporate ESG performance and its mechanisms, using data from Chinese listed companies from 2009 to 2023. The results show that patient capital significantly enhances corporate ESG performance, with financing constraints serving as a partial mediator. Additionally, the green innovation bubble negatively moderates this relationship. Furthermore, the effect of patient capital is more pronounced in high-tech and highly-polluting firms. Multiple robustness tests further confirm these findings. The study provides theoretical support and policy implications for encouraging long-term capital participation in ESG governance and enhancing corporate sustainable development.

Suggested Citation

  • Suo, Wen & Qiao, Pengliang, 2025. "Patient capital, green innovation bubble, and corporate ESG performance," Finance Research Letters, Elsevier, vol. 86(PF).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pf:s1544612325020574
    DOI: 10.1016/j.frl.2025.108803
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • 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
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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