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Green supply chain management and ESG rating divergence: A quasi-natural experiment in China

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  • Guo, Chun
  • Luo, Jingbo

Abstract

Using China's six batches of green supply chain management demonstration enterprises (GSCMs) selection from 2017 to 2022 as exogenous shocks and drawing on the new institutional, signaling and information asymmetry theories, we investigate the information effect of green supply chain management (GSCM) on GSCMs' ESG rating divergence by constructing a staggered difference-in-difference model. We find a significant and negative effect of GSCM on GSCMs' ESG rating divergence. This negative effect is more pronounced for GSCMs in highly polluting industries, with green investor, occupying heightened climate change risk perception, and undergoing greater public environmental attention. The mechanism test demonstrates that GSCM mitigates GSCMs' ESG rating divergence via enhancing internal information disclosure and attracting external stakeholder attention. Further analyses indicate that the capital market values GSCMs, as evidenced by the fact that GSCM improves ESG rating divergent GSCMs' stock liquidity and reduces their equity financing costs. Taken together, we underscore the pivotal information effect of green supply chain management practices and regulations on mitigating ESG rating divergence.

Suggested Citation

  • Guo, Chun & Luo, Jingbo, 2026. "Green supply chain management and ESG rating divergence: A quasi-natural experiment in China," Technological Forecasting and Social Change, Elsevier, vol. 223(C).
    • Handle: RePEc:eee:tefoso:v:223:y:2026:i:c:s0040162525004883
    DOI: 10.1016/j.techfore.2025.124457
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