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Corporate Sustainability: The Impact of Environmental, Social, and Governance Performance on Corporate Development and Innovation

Author

Listed:
  • Defang Ma

    (School of Management, Capital Normal University, Beijing 100048, China)

  • Liangwei Li

    (School of Management, Capital Normal University, Beijing 100048, China)

  • Yuxi Song

    (School of Economics and Management, Henan University of Technology, Zhengzhou 450007, China)

  • Mengkai Wang

    (School of Business, Renmin University of China, Beijing 100872, China)

  • Qiaowen Han

    (School of Management, Capital Normal University, Beijing 100048, China)

Abstract

As a comprehensive concept that integrates the environment, society, and corporate governance, little is known about whether and how Esg affects firm development, as the concept of sustainable development is deepened and promoted. Therefore, the purpose of this paper is to investigate the impact of Esg performance on corporate development. This paper selects the data of A-share-listed companies from 2010 to 2020 as samples, utilizes the linear regression model to empirically study the impact mechanism of Esg performance on enterprise development, and considers transmission pathways. It is found that the development of high-technology firms is more significantly affected by Esg performance than the development of non-high-technology firms. It is further found that Esg performance can promote enterprise development by reducing financing constraints. Meanwhile, corporate innovation can enhance the promotion effect of Esg performance on corporate development. After the robustness tests of instrumental variables and the lagged effects, the research conclusions still hold.

Suggested Citation

  • Defang Ma & Liangwei Li & Yuxi Song & Mengkai Wang & Qiaowen Han, 2023. "Corporate Sustainability: The Impact of Environmental, Social, and Governance Performance on Corporate Development and Innovation," Sustainability, MDPI, vol. 15(19), pages 1-16, September.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:19:p:14086-:d:1245842
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    References listed on IDEAS

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    3. Arnone, Massimo & Costantiello, Alberto & Drago, Carlo & Leogrande, Angelo, 2025. "ESG Drivers of Financial Development: A Multimethod Analysis of Domestic Credit to the Private Sector," MPRA Paper 127044, University Library of Munich, Germany.

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