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ESG performance and green transformation of industrial corporates

Author

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  • Zhonghua Cheng

    (Nanjing University of Information Science & Technology
    Nanjing University of Information Science & Technology)

  • Minghui Zhao

    (Nanjing University of Information Science & Technology)

Abstract

Ainst the backdrop of the sustainable development era, championing corporate green transformation and the attainment of high-quality development have garnered attention from all societal sectors. As a crucial means of practicing green finance, ESG performance wields a remarkable effect on the green revolution of industrial corporates (ICGT). This research constructs a green transformation index utilizing Python web crawling technology and adopts a two-way model with fixed effects to examine the influence and underlying mechanism of ESG performance on ICGT using data from industrial corporates spanning the years 2012 to 2022. We discern the favorable impacts of ESG performance on ICGT. Mechanism testing reveals that ESG performance can propel ICGT by amplifying green investment, augmenting stakeholder attention, optimizing green equity structure, and alleviating corporate financing constraints, and this boost is greater notable in non-state-owned, small-scale, and high-tech corporates. Extended analysis demonstrates that ESG skepticism attenuates the promotional repercussions of ESG on ICGT, and compared to exaggerated low-quality ESG disclosures, high-quality ESG disclosures wield a stronger transformative effect.

Suggested Citation

  • Zhonghua Cheng & Minghui Zhao, 2025. "ESG performance and green transformation of industrial corporates," Economic Change and Restructuring, Springer, vol. 58(5), pages 1-33, October.
    • Handle: RePEc:kap:ecopln:v:58:y:2025:i:5:d:10.1007_s10644-025-09913-z
    DOI: 10.1007/s10644-025-09913-z
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