Search Results (77)

We investigate the effect of financial openness on corporate resilience. Corporate resilience metrics refer to the processes through which firms respond to crises, encompassing the capabilities developed during adaptation, absorption, innovation, recovery, and development. Using dynamic difference-in-differences (DID) models and panel data on Chinese A-share listed firms from 2009 to 2022, we found that firms included in the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect (SSHK) lists exhibited higher levels of corporate resilience after the openness. Introducing foreign ownership and improving the quality of information disclosure are two plausible pathways through which financial openness can promote corporate resilience. At the same time, the degree of industry competition and level of external financing dependence moderate the results. Importantly, corporate resilience moderates the positive long-term effect of financial openness on firms’ total factor productivity (TFP). These findings highlight that fostering corporate resilience is not merely an outcome but a critical condition for translating financial integration into sustainable productivity gains, enlightening resilience-oriented policymaking in emerging markets undergoing reform. Full article

Following and imitating others’ digital innovation decisions is not always grounded in rational judgment; it may also arise from blind conformity, reflecting a “herding behavior”. Drawing on a panel dataset of Chinese listed firms from 2010 to 2022, this study takes firms in the same industry as the reference group to investigate the existence, driving mechanisms, and economic consequences of corporate digital innovation convergence. The findings show that both breakthrough and incremental digital innovation exhibit convergence at the firm level and are jointly driven by information transmission, market competition, and resource dependence. However, the economic consequences of these two types of innovation convergence differ significantly. The convergence of breakthrough digital innovation enhances firms’ total factor productivity, return on equity, and capital market value, representing a positive peer effect, whereas the convergence of incremental digital innovation weakens these core indicators, reflecting a herding behavior. The heterogeneity analysis indicates that breakthrough digital innovation convergence is more pronounced in regions with stronger intellectual property protection and in industries with higher technology intensity, while incremental digital innovation convergence is more pronounced among private firms and in industries with lower technology intensity. Our findings provide valuable insights into the interactive dynamics of corporate digital innovation decisions and carry important implications for both theory and practice. Full article

Using the Information Benefiting the People (IBP) policy as an exogenous shock to digital government construction, we investigate the impact of digital government on the Green Total Factor Productivity (GTFP) of listed forestry companies. Drawing on data for China’s A-share forestry firms from 2010 to 2023, our baseline findings reveal that digital government significantly promotes firms’ GTFP, and this result persists across a battery of robustness checks. Mechanism tests show that this effect can be explained by alleviated financial constraints and an increased level of corporate digital transformation; together with heterogeneity analysis, these results reveal both the transmission paths and the boundary conditions of the policy effect. In addition, the effect is more pronounced in small and medium-sized enterprises and in areas with lower levels of financial development and marketization, providing robust evidence for the above mechanisms. Our study offers important implications for the sustainable development of forestry enterprises. Full article

ESG rating has become a key factor influencing its perception and decision-making of companies, but there are significant differences in the rating results of ESG rating agencies. Current research mainly focuses on the economic impact of ESG rating divergence, while insufficient attention has been paid to their impact on corporate growth capabilities. This article is based on the perspective of stakeholders and uses A-share-listed companies in China from 2016 to 2023 as research samples to empirically analyze the correlation mechanism between ESG ratings, rating divergence, and corporate productivity. Research has found that higher ESG ratings are associated with higher corporate productivity, but significant differences in ESG ratings weaken this effect. This conclusion remains valid in robustness tests and addressing endogeneity issues. The mechanism test confirms that ESG rating divergence exacerbates financing constraints and managerial short-termism, thereby reducing corporate productivity. Further analysis shows that the negative impact of ESG rating divergence is more pronounced in companies with better information environments and ESG information disclosure with lower quality. Moreover, compliance with the GRI disclosure framework and providing independent environmental reports are effective methods of improving ESG. These findings contribute to the optimization of ESG rating management and corporate information governance, providing empirical evidence on the economic consequences of ESG rating divergence in emerging capital markets. Full article

Green manufacturing is an important path for accelerating the green transformation of the industrial development model. “Green Factories” certification serves as an innovative approach to voluntary environmental regulation, designed to guide firms toward optimal decision making in green manufacturing. Can the voluntary environmental regulation policy be effective, particularly in the absence of a mandatory, strictly environmental, social, and governance (ESG) framework environment? Utilizing the “Green Factories” certification pilot policy released by the Ministry of Industry and Information Technology (MIIT) in 2016 as a quasi-natural experiment, this study employs the staggered difference-in-differences (DID) model to estimate the impacts of the voluntary environmental regulation policy on corporate ESG performance. Using a panel dataset of 2585 Chinese A-share listed enterprises from the industrial sector spanning 2012 to 2021, the results show that the “Green Factories” certification pilot policy significantly improves corporate ESG performance, and the results remain consistent after robustness tests. The mechanism analysis reveals that the influencing channel mainly works through green technology innovation, total factor productivity (TFP), and digital transformation. Heterogeneity tests further indicate that the green manufacturing pilot policy has a stronger effect on larger, heavily polluting, private enterprises that receive greater investor attention. This study provides empirical evidence at the micro level on the determinants of corporate ESG performance and voluntary environmental regulation policy evaluation, offering practical insights for promoting green manufacturing engineering development. Full article

This study aims to investigate the determinants of labour productivity across European non-financial entities using aggregated data from the Bank for the Accounts of Companies Harmonized (BACH) database. Focusing on six European Union countries (Belgium, France, Italy, Portugal, Poland, and Spain). Annual information from 2010 to 2023 is used (the last available year), including three size classes (small, medium-sized and larger entities) per division (two-digit code) by year and by country, totalling 14,188 observations. The combination of sectors and class sizes varies from 191 to 208 by country. It uses gross value added per employee as a proxy for labour productivity. Using a fixed-effects estimator and panel data regression techniques, the analysis reveals that labour productivity explanatory factors, particularly firm size, profitability, financialisation, leverage, and tangibility, have heterogeneous and sometimes contradictory effects across countries, sectors, and size classes. Larger firms generally tend to have higher levels of labour productivity, although this feature is not consistent among countries. Size and profitability more consistently exert a strong positive influence, whereas financialisation and leverage typically show negative or nonlinear effects. The results highlight the structural diversity of the European corporate landscape and challenge the adequacy of one-size-fits-all policy measures, contributing to the literature on productivity and offering further insights to policymakers by integrating cross-sectional, sectoral, and size-specific perspectives on labour efficiency within the EU context. Full article

In the context of global sustainable development, ESG has assumed a pivotal role in evaluating corporate performance. To identify the causal effect of ESG disclosure on firm value, we implement a difference-in-differences (DID) analysis using panel data from A-share listed tourism companies between 2012 and 2020. The study revealed that ESG disclosure has significantly increased tourism corporate value by alleviating financing constraints, reducing financial risks, and attracting green investors. The validity of our conclusion is affirmed through a series of robustness checks, including the parallel trend test, placebo test, bacon decomposition, propensity score matching (PSM), and system generalized method of moments (GMM). Heterogeneity analysis indicates that the positive impact of ESG disclosure on the value of tourism firms is more pronounced in samples with state-owned property nature, a separation of CEO and chairman roles, and low green total factor productivity. Furthermore, this effect is significantly stronger for firms in the accommodation and catering and tourism sightseeing sectors. This study contributes by empirically validating the internal transmission channels through which ESG performance affects firm value in the tourism sector, while also demonstrating the heterogeneous nature of this relationship, thereby providing nuanced evidence for developing differentiated ESG strategies. Full article

Amid the push for sustainable and high-quality development, corporate environmental, social, and governance (ESG) performance has garnered increasing attention from stakeholders. This empirical study uses a 2009–2022 panel of 1264 A-share-listed companies to examine the impact of ESG performance on corporate sustainability paths and to identify the channels through which this impact operates. Ordinary least squares estimates show that stronger ESG performance is associated with significantly higher total factor productivity, and the effect is more pronounced in heavy-polluting industries. Mechanism tests indicate that ESG disclosure mediates this relationship, with its influence emerging over time and strengthening in subsequent years. The mediation also varies across ESG pillars, with social disclosure exerting the most decisive influence. These findings provide actionable insights—both motivating managers to strengthen their ESG engagement and informing policymakers as they seek to refine regulatory frameworks. By highlighting the value-creating role of ESG in aligning growth with sustainability, this study offers a novel perspective on corporate transformation within the context of a rapidly evolving economic landscape. Full article

Environmental, Social, and Governance (ESG) performance has become a vital instrument for corporations to integrate sustainable development principles into business operations. Against the dual backdrop of disruptions in the international order and economic instability, investigating the impact of corporate ESG performance on total factor productivity (TFP) under environmental uncertainty is of significant importance. Utilizing data from Chinese A-share listed companies spanning the period 2011 to 2022, this study employs a baseline regression model, a mediation effect model, a moderation effect model, and a moderated mediation model to examine the impact of corporate ESG performance on TFP under conditions of environmental uncertainty. The results indicate that (1) corporate ESG performance exerts a positive influence on TFP, particularly in tertiary industry firms, state-owned enterprises (SOEs), and enterprises with lower environmental risks; (2) improving ESG performance helps alleviate financing constraints, enhance human capital, and boost innovation capability, thereby strengthening TFP; and (3) environmental uncertainty moderates the pathway through which ESG performance affects TFP, amplifying its positive effect. Based on these findings, it is recommended that countries collaborate to establish a global, cross-industry platform for sharing ESG practices, develop a stable ESG policy framework and incentive mechanisms, and encourage enterprises to enhance their ESG management and resilient governance capabilities to promote sustainable economic development. Full article

With the rapid advancement of artificial intelligence (AI), its deep integration into corporate operations has become the key driver for firms to reconfigure factor resources, boost green total factor productivity, and achieve green transformation. This analysis empirically investigates the influence of AI on corporate green transformation using panel data of China’s listed companies from 2015 to 2022. This research employs a multidimensional fixed effects linear model to analyze the relationship, finding that AI significantly enhances corporate green transformation. Mechanism analysis reveals that AI promotes green transformation by enhancing firm research and development (R&D) and firm green innovation capabilities. Heterogeneity analysis shows that the positive impact of AI on corporate green transformation is more significant in the eastern region, post-COVID−19, and in low-pollution industries. The impact is also significantly and positively moderated by the development of the non-state-owned economy and the development degree of product markets. These findings suggest that AI is a critical tool for promoting sustainable economic growth and green transformation in businesses. Full article

In the Industry 4.0 era, marked by rapid digital technological breakthroughs, the adoption of environmental, social, and corporate governance (ESG) is crucial for improving corporate management capabilities and promoting sustainable corporate development. We analyze data from 769 A-share listed companies in China’s manufacturing sector from 2011 to 2023 to examine the impact and transmission mechanism of digital transformation on ESG performance in the manufacturing industry. The findings demonstrate that digital transformation significantly improves manufacturing ESG performance. The results of the mechanism study demonstrate that digital transformation can enhance the ESG performance of the manufacturing sector through three channels: strengthening organizational resilience, promoting technological innovation dynamics, and increasing the green total factor productivity of enterprises. The heterogeneity test results indicate that the influence of digital transformation on ESG is more significant in state-owned firms, where a more a lenient policy environment and moderate market competitiveness promote improved ESG performance via digital transformation. Full article

In this study, we examine the impact of mergers and acquisitions (M&As) on firm environmental performance, aiming to address the gap in research and guide firms, investors, and policymakers toward more environmentally conscious decision-making in M&A. Using panel data from Chinese A-share listed firms (2008–2022), we estimate a two-way fixed effect model. The Propensity Score Matching and the instrumental variable method address potential endogeneity concerns, and robustness checks validate the findings. We found that M&As have a significantly positive effect on firm environmental performance, with heterogeneous impacts across regions, industries, and M&A types. The environmental benefits are most pronounced in heavily polluting industries and hybrid M&A deals. Eastern China shows more modest improvements. The results of mechanism tests revealed that M&As enhance environmental performance primarily by boosting total factor productivity and fostering innovation. This study offers a novel perspective by linking M&A activities to environmental sustainability, enriching the literature on both M&As and corporate environmental performance. We show that even conventional M&A deals (not sustainability-focused) can improve environmental performance through operational synergies. Expanding beyond polluting industries, we reveal how sector characteristics shape M&A’s environmental impacts. We identify practical mechanisms through which standard M&A activities can advance sustainability goals, helping firms balance economic and environmental objectives. It provides empirical evidence from China, an emerging market with distinct institutional and regulatory contexts. The findings offer guidance for firms engaging in M&A to strategically improve sustainability performance. Policymakers can leverage these insights to design incentives for M&A in pollution-intensive industries, aligning economic growth with environmental goals. By demonstrating that M&As can enhance environmental outcomes, this study supports the potential for market-driven mechanisms to contribute to broader societal sustainability objectives, such as reduced industrial pollution and greener production practices. Full article

It is increasingly recognized that the twin transitions of digitalization and green transformation are pivotal to achieving sustainable development. This study examines how digital trade affects corporate green total factor productivity (GTFP), using panel data from Chinese A-share listed firms and 287 prefecture-level cities in Mainland China from 2012 to 2022. The results demonstrate that digital trade exerts a significant positive impact on GTFP, primarily through improvements in technical efficiency, with heterogeneous effects across different stages of the corporate life cycle. Endogeneity concerns are carefully addressed through instrumental variable estimation and quasi-experimental designs, and robustness checks confirm the reliability of the findings. Mechanism analyses further reveal that digital trade enhances GTFP by stimulating green technological innovation and optimizing supply chain management. Importantly, threshold regression reveals non-linear effects. Both the level of digital trade and institutional factors, such as environmental regulation, intellectual property protection, and market integration, moderate the relationship between digital trade and GTFP in U-shaped, N-shaped, and other positive non-linear patterns. These insights enhance the understanding of how digitalization interacts with institutional contexts to drive sustainable productivity growth, providing practical implications for policymakers seeking to optimize digital trade strategies and complementary regulatory frameworks. Full article

As participants in sustainable development, corporations face the important and controversial issue of whether they can promote corporate sustainability through environmental, social, and governance (ESG) practices. To address this issue, we examine the relationship between ESG performance and corporate sustainability, measured by green total factor productivity (GTFP). Using a panel dataset of 17,559 firm-year observations from non-financial firms listed on the Shanghai and Shenzhen stock exchanges in China between 2011 and 2019, we employ fixed-effects regression models and two-stage least squares (2SLS) with instrumental variables to empirically test the impact of ESG ratings on GTFP, identify the underlying mechanisms, and examine potential heterogeneity across firms. The results show that higher ESG ratings are significantly associated with increased GTFP. Mediation analysis further reveals that this positive relationship operates through reduced financing constraints and enhanced green innovation. Notably, the mediating role of financing constraints is more pronounced for firms with greater reliance on external capital. Heterogeneity analysis indicates that ESG ratings exert stronger effects in eastern regions, pollution-intensive sectors, and state-owned enterprises. These findings provide empirical support for the role of ESG performance as an effective mechanism to advance corporate sustainability through ethics-driven financial access and innovation capability. Full article

This study examines the impact of capital market openness on corporate green total factor productivity (GTFP) using a quasi-natural experiment based on the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect policies. Employing a multi-period difference-in-differences (DID) approach, the findings reveal that capital market openness significantly enhances corporate GTFP through two primary mechanisms: strengthening firms’ green financial resources and technological innovation (green “hard strength”) and improving corporate environmental governance, green information disclosure, and managerial green expertise (green “soft strength”). Further heterogeneity analysis suggests that firms with greater institutional investor engagement, higher market competition, and non-state ownership exhibit stronger responses. These results provide policy insights into leveraging financial liberalization to drive corporate sustainability and green economic growth. This study highlights the role of financial markets in supporting global carbon neutrality and sustainable development goals. Full article