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ESG certification, green innovation, and firm value: A quasi-natural experiment based on SynTao Green Finance's ESG ratings: A pre-registered study

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  • Bai, Xiao
  • Zhao, Wenyao
  • Tian, Geran

Abstract

This pre-registered study executes the empirical design approved in the associated pre-registered report (Bai et al., 2024) to investigate the impact of environmental, social, and governance (ESG) certification on green innovation and firm value. Using the first release of ESG ratings by SynTao Green Finance as a quasi-natural experiment, the study reveals several key findings: 1) ESG certification significantly increases the quantity of green innovation while demonstrating no substantial impact on its quality. 2) the increase in green innovation quantity is primarily driven by the alleviation of financing constraints and enhanced monitoring, while the quality remains unaffected due to managerial opportunism. 3) the quality of green innovation significantly enhances the positive impact of ESG certification on firm value, whereas the quantity of green innovation does not have a significant moderating effect. These findings provide significant implications for firms aiming for green development and for emerging markets seeking to improve ESG disclosure regulations.

Suggested Citation

  • Bai, Xiao & Zhao, Wenyao & Tian, Geran, 2024. "ESG certification, green innovation, and firm value: A quasi-natural experiment based on SynTao Green Finance's ESG ratings: A pre-registered study," Pacific-Basin Finance Journal, Elsevier, vol. 88(C).
    • Handle: RePEc:eee:pacfin:v:88:y:2024:i:c:s0927538x2400324x
    DOI: 10.1016/j.pacfin.2024.102572
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    References listed on IDEAS

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    1. Xiaochong Li & Wenwen Dang & Yanxi Li, 2025. "Can ESG Performance Promote Corporate Green Transformation? Evidence from Green OFDI in China," Sustainability, MDPI, vol. 17(7), pages 1-24, April.

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