Search Results (596)

This study uses financial data from 872 Chinese listed companies (2018–2022). It tests the triple dividend effect and threshold effect of China’s environmental protection tax (EPT) using high-dimensional fixed effects models and panel threshold models. We document that (1) EPT creates an environmental dividend for Chinese listed companies. It significantly reduces pollution emissions. A 1-unit tax increase reduces LnTPPE by 2.5%. (2) EPT creates a significant innovation dividend. It forces enterprises to improve the quality of authorized patents. A 1-unit tax increase raises patent technological complexity by 0.79%. (3) EPT creates an economic dividend. It significantly improves firm performance. A 1-unit tax increase raises relative corporate revenue by 38.1%. (4) EPT exerts significant threshold effects on micro-level triple dividend outcomes among Chinese listed companies. A heterogeneity analysis shows significant differences in threshold effects between non-heavily polluting and heavily polluting industries. This study confirms that China’s EPT generates a micro-level triple dividend effect alongside coexisting threshold effects for listed companies. This provides literature references for China to design and implement differentiated policies and offers a quantitative empirical case for implementing globally sustainable EPT strategies. Full article

Recent theoretical and empirical studies highlight that information asymmetry and owner–manager conflict of interest can distort corporate investment decisions. Building on this premise, we hypothesize that superior environmental, social, and governance (ESG) performance mitigates these frictions by (H1) alleviating financing constraints and (H2) intensifying external analyst scrutiny. To test these hypotheses, we examine all Shanghai and Shenzhen A-share non-financial firms from 2009 to 2023. Using panel fixed-effects and two-stage least squares with an industry–province–year instrument, we find that higher ESG performance significantly reduces investment inefficiency; the effect operates through both lower financing constraints and greater analyst coverage. Heterogeneity analyses reveal that the improvement is pronounced in small non-state-owned, non-high-carbon firms but absent in large state-owned high-carbon emitters. These findings enrich the literature on ESG and corporate performance and offer actionable insights for regulators and investors seeking high-quality development. Full article

An important element in the Constitution of the People’s Republic of China is the guarantee of gender equality in all fields. The principle is not reflected in terms of corporate governance and senior management, however. A study of the largest 400 companies listed on Chinese stock exchanges shows far fewer female board members and senior managers than male counterparts and only a small improvement over the course of a decade. A comparison of gender balances in terms of a range of variables, including stock exchange listing, industry type, and ownership type, reveals better balances in wholly privately owned firms than in those with controlling state interests. Subject to intervening government policies to promote state-owned enterprises over private sector counterparts, the pattern over the decade studied suggests there is a possibility privately owned enterprises may gradually displace state-owned companies in the largest 400 group and gender balances in senior roles in the largest 400 group will consequently improve. Full article

Drawing on a panel dataset of 27,972 firm-year observations from Chinese A-share listed companies spanning 2009 to 2022, this study employs fixed-effects models to examine the nonlinear relationship between firm-level climate policy uncertainty (FCPU) and corporate green governance expenditure (GGE). The results reveal a robust inverted U-shaped pattern: moderate levels of FCPU encourage firms to increase GGE, while excessive uncertainty discourages it. Financing constraints mediate this relationship; specifically, FCPU exhibits a U-shaped impact on financing constraints, initially easing and then tightening them. Older top management teams accelerate the GGE downturn, while government environmental expenditure delays it, acting as a buffer. Heterogeneity analyses reveal the inverted U-shaped effect is more pronounced for non-polluting firms and state-owned enterprises (SOEs). This study highlights the complex dynamics of FCPU on corporate green behavior, underscoring the importance of climate policy stability and transparency for advancing corporate environmental engagement in China. Full article

In the context of pursuing the goal of strategic imperatives of sustainable development, the ESG performance of enterprises has become a key yardstick for measuring their comprehensive environmental contribution and economic efficiency. Enhancing ESG performance has far-reaching significance in promoting green and sustainable development of enterprises and society. Drawing on the upper echelons theory, this paper investigates the impact of the chief executive officer’s (CEO’s) green experience on corporate environmental, social, and governance (ESG) performance, utilizing a sample of publicly listed Chinese companies from 2011 to 2023. The study demonstrates that CEOs with green experience significantly enhance corporate ESG performance, a conclusion that remains consistent following a series of rigorous robustness checks. Mechanistic analysis reveals that CEOs’ green experience primarily facilitates corporate ESG performance enhancement through green innovation initiatives. Furthermore, CEO discretion amplifies the positive influence of green experience on ESG performance. Heterogeneity analysis demonstrates that the influence of the CEOs’ green experience on ESG performance is more pronounced in high-tech enterprises, in markets characterized by lower levels of competition, and in firms situated in regions exhibiting higher degrees of social trust. These findings impart both theoretical and practical implications for enhancing corporate ESG performance and offer novel strategic perspective to advance environmental stewardship, social responsibility, and corporate governance frameworks. Full article

From the perspective of credit ratings, this paper studies the impact of air pollution on corporate credit costs and the impact mechanism. Based on 2007–2022 data on A-share listed companies in the Chinese capital market, this paper uses a two-way fixed effects model to examine the impact of air pollution on corporate credit costs and the impact mechanism. The results show that air pollution increases the credit costs for enterprises because air pollution affects the sentiment of rating analysts, leading them to give more pessimistic credit ratings to enterprises located in areas with severe air pollution. The moderating effect analysis reveals that the effect of air pollution on the increase in corporate credit costs is more pronounced for high-polluting industries, manufacturing industries, and regions with weaker bank competition. Further analysis reveals that in the face of rising credit costs caused by air pollution, enterprises tend to adopt a combination strategy of increasing commercial credit financing and reducing the commercial credit supply to cope. Although this response behavior alleviates corporations’ own financial pressure, it may have a negative effect on supply chain stability. This paper provides new evidence that reveals that air pollution is an implicit cost in the capital market, enriching research in the fields of environmental governance and capital markets. Full article

Promoting social equity is a global issue, and common prosperity is an important goal for human society’s sustainable development. This study is the first to examine climate risks’ impacts on common prosperity from the perspective of corporate employees, providing micro-level evidence for the coordinated development of climate governance and social equity. Employing data from companies listed on the Shanghai and Shenzhen stock exchanges from 2016 to 2023, a fixed-effects model analysis was conducted, and the results showed the following: (1) Climate risks are positively associated with the common prosperity of corporate employees in a significant way, and this effect is mainly achieved through employee guarantees, rather than employee remuneration or employment. (2) Climate risk will increase corporate financing constraints, but it will also force companies to improve their ESG performance. (3) The mechanism tests show that climate risks indirectly promote improvements in employee rights and interests by forcing companies to improve the quality of internal controls and audits. (4) The results of the moderating effect analysis show that corporate size and performance have a positive moderating effect on the relationship between climate risk and the common prosperity of corporate employees. This finding may indicate the transmission path of “climate pressure—governance upgrade—social equity” and suggest that climate governance may be transformed into social value through institutional changes in enterprises. This study breaks through the limitations of traditional research on the financial perspective of the economic consequences of climate risks, incorporates employee welfare into the climate governance assessment framework for the first time, expands the micro research dimension of common prosperity, provides a new paradigm for cross-research on ESG and social equity, and offers recommendations and references for different stakeholders. Full article

In an era where sustainable development is increasingly a core strategic issue for businesses, how top management, as the architects of corporate strategy, can achieve a synergy of economic, social, and environmental benefits through internal management mechanisms to promote corporate sustainability is a central focus for both academia and practice. This study aims to explore how Executive Cognitive Flexibility (CF) influences Firm Performance and to uncover the mediating effects of Non-market Strategy. We use panel data from Chinese A-share listed companies between 2016 and 2022 to examine and empirically analyze this mechanism. Our findings indicate that CF has a positive impact on Firm Performance. This relationship is realized through the pathway of Non-market Strategy, specifically manifesting as a reduction in Corporate Social Responsibility (CSR) and an increase in Corporate Political Activity (CPA). Further analysis reveals that the impact of executive cognitive flexibility on firm performance is differentially influenced by internal and external environmental contexts. The findings of this study provide important practical insights and policy recommendations for companies on cultivating executive cognitive flexibility, optimizing non-market strategies, and enhancing firm performance in various internal and external environments. Full article

Although carbon emissions trading systems are universally acknowledged as one of the most potent policy instruments for counteracting hazardous climate trends, and digitalization is seen as a favorable technological means to promote corporate green and low-carbon transformation, few studies have investigated the dark side of both. Using data on Chinese listed companies from 2011 to 2020 and adopting a multi-period DID methodology, this research reveals that, in response to the carbon emissions trading system, firms often adopt low-cost, strategic environmental governance behaviors—namely, carbon washing—to reduce compliance costs and maintain their reputation and image. Furthermore, the study reveals that the information advantages of digital transformation create conditions for the opportunistic manipulation of carbon disclosure. Digitalization amplifies the positive influence of the carbon trading system on corporate carbon washing behavior. Mechanism analysis confirms that the carbon emissions trading system increases the production costs of regulated firms, thereby increasing their carbon washing behavior. Economic consequence analysis confirms that firms engage in carbon washing to gain legitimacy and maintain their reputation and image, which may allow them to obtain opportunistic benefits in the capital market. Finally, this study suggests that the government should adopt supplementary policy tools, such as environmental subsidies, enhanced use of digital technologies to strengthen regulatory capacity, and increased media oversight, to mitigate the unintended consequences of the carbon trading system on corporate behavior. Full article

Amid the rapid development of the digital economy, data elements—emerging as a new type of production factor—are gradually becoming a key resource for enhancing corporate efficiency and promoting high-quality development. The marketization of data elements is also steadily progressing and playing an increasingly important role. Based on data from Chinese A-share listed companies spanning 2007 to 2023, this study systematically evaluates the impact of data element marketization on corporate investment efficiency using a Double Machine Learning approach. The findings reveal that data element marketization significantly improves investment efficiency. Mechanism analysis further demonstrates that such improvement is primarily driven by reduced information dispersion, enhanced risk-bearing capacity, and improved operational efficiency. Heterogeneity analysis indicates that these effects are more pronounced for firms in high-tech industries, high growth potential firms, enterprises located in regions with strong digital infrastructure, and firms experiencing overinvestment problems. This study provides empirical evidence on how the marketization of data elements in China enhances economic outcomes, improving corporate investment decisions, which could serve as a reference for other countries undergoing digital transformation. Full article

As inevitable outcomes of the digital economy’s low-carbon development, green data centers play a crucial role in environmental impact and underlying mechanisms. This study focuses on green data center establishment as a representative practice, utilizing Chinese A-share listed companies and urban data from 2009 to 2023 to construct a multi-period difference-in-differences model. From a supply chain perspective, we investigate the impact of green data centers on corporate carbon emissions and their mechanisms. The results demonstrate that regional establishment of green data centers significantly promotes corporate carbon emission reduction, with conclusions remaining robust after a series of comprehensive robustness and endogeneity tests. This process primarily operates through two channels: green total factor energy efficiency and green attention. Green data center establishment significantly enhances green total factor energy efficiency and corporate green attention. The more developed the regional digital infrastructure and the higher the computing power development levels, the stronger the incentive effect on corporate carbon reduction. Heterogeneity analysis reveals that green data centers have more significant promoting effects on carbon emission reduction in state-owned enterprises and high-tech enterprises. This research contributes to a deeper understanding of the effects, mechanisms, and regional variations related to green data centers in facilitating corporate carbon emission reduction. Full article

As Environmental, Social, and Governance (ESG) gradually become the common language for sustainable development of international society and international cooperation in China, it is worth discussing whether ESG practices can help Chinese enterprises shape a responsible international image, overcome the liability of foreignness (LOF) and improve the long-term performance of cross-border mergers and acquisitions (M&As). On the basis of theoretical discussion, combined with the panel data of cross-border M&As of China A-share listed companies from 2010 to 2021, this paper empirically examines that the ESG performance of acquirers has a significant positive impact on the long-term performance of cross-border mergers and acquisitions (M&As) of China A-share listed companies. Furthermore, the ESG performance of environment and governance dimensions and heavily polluting enterprises has stronger incentive effects on the long-term performance of cross-border M&As. The ESG performance of the acquirer positively affects the long-term performance of cross-border M&As of China A-share listed companies by acquiring capital market resources, product market competitiveness, regulatory legitimacy, and enhancing internal synergy. Full article

Against the backdrop of the accelerated transition to sustainable development in global emerging markets, the synergistic mechanism between environmental governance innovation and corporate green transformation has become a key issue in realizing high-quality development. As the world’s largest emerging economy, China’s new Environmental Protection Law (EPL), implemented in 2015, has promoted green technology innovation and performance improvement of heavily polluting enterprises by strengthening environmental regulation. This paper takes Chinese A-share listed companies as samples from 2012–2023, treats the EPL as a quasi-natural experiment, and applies the DID method to explore the path of its impact on the performance of heavily polluting firms, with a focus on analyzing the mediating effect of green technological innovation and the moderating role of firm size and regional differences. The study revealed the following findings: the implementation of the EPL significantly improves the performance of heavily polluting enterprises, which verifies the applicability of “Porter’s hypothesis” in emerging markets; green technological innovation plays a partly intermediary role in the process of policy affecting enterprise performance, indicating that environmental regulation achieves win–win economic and environmental benefits by driving the innovation compensation mechanism; and there is significant heterogeneity in policy effects, with large-scale firms and firms in the eastern region experiencing more pronounced performance improvements, reflecting differences in resource endowments and institutional implementation strength within emerging markets. This study provides empirical evidence for emerging market countries to optimize their environmental governance policies and construct a “regulation–innovation–performance” synergistic mechanism, which will help green economic transformation and ecological civilization construction. Full article

As Chinese firms play pivotal roles in global supply chains, multinational corporations face increasing pressure to ensure ESG accountability across their sourcing networks. Current ESG rating systems lack transparency in incorporating China’s unique industrial, economic, and cultural factors, creating reliability concerns for stakeholders managing supply chain sustainability risks. This study develops an explainable artificial intelligence framework using SHAP and permutation feature importance (PFI) methods to predict the ESG performance of Chinese firms. We analyze comprehensive ESG data of 1608 Chinese listed companies over 13 years (2009–2021), integrating financial and non-financial determinants traditionally examined in isolation. Empirical findings demonstrate that random forest algorithms significantly outperform multivariate linear regression in capturing nonlinear ESG relationships. Key non-financial determinants include patent portfolios, CSR training initiatives, pollutant emissions, and charitable donations, while financial factors such as current assets and gearing ratios prove influential. Sectoral analysis reveals that manufacturing firms are evaluated through pollutant emissions and technical capabilities, whereas non-manufacturing firms are assessed on business taxes and intangible assets. These insights provide essential tools for multinational corporations to anticipate supply chain sustainability conditions. Full article

Numerous studies have examined how environmental restrictions affect innovation behavior; however, there has not been enough research focused on how public environmental concerns affect green innovation. This paper utilizes panel data of 4607 Chinese A-share listed companies (29,877 firm-year observations) over the period of 2011–2022 and constructs a dual fixed-effects model to investigate the impact of public environmental concern (PEC) on green innovation quality. Furthermore, we explore the mechanisms underlying this influence through the lenses of external pressure and internal motivation, and the moderating effect of digital transformation. The findings reveal the following: (1) Public concern about environmental issues is positively correlated with the green innovation quality. For every 1% increase in PEC, the companies’ green innovation quality will increase by 0.013%. (2) PEC forces firms to improve the green innovation quality through pressure from institutional investors, while pushing firms to boost the green innovation quality by stimulating ESG performance. (3) Digital transformation reinforces the impact of PEC on the green innovation quality. (4) PEC is more sensitive to the impact of green innovation quality in high-tech and non-heavy-polluting companies, and the enhancement effect is more pronounced in the eastern and western districts. Besides expanding the insights into the factors influencing the green innovation quality, this study also gives pragmatic guidance for governments and companies to enhance the green innovation quality, address environmental challenges, and achieve sustainable development. Full article