The Impact of Green Finance on Corporate ESG Performance: Evidence from China

Yi Zhao

doi:10.62051/3e05nk85

Authors

Yi Zhao

DOI:

https://doi.org/10.62051/3e05nk85

Keywords:

Green Finance; Corporate ESG Performance; Marketization; Societal Emphasis.

Abstract

This study examines the influence of green finance on corporate ESG performance in China, highlighting regional disparities and the role of marketization, societal green attention, and technological innovation. It reveals that green finance is significantly associated with improved ESG performance, particularly in the economically advanced Eastern region. Marketization and societal emphasis on green practices are positively correlated with ESG scores, while the impact of new technologies, though positive, requires further research due to its statistical proximity to significance. This paper underscores the importance of adapting green finance strategies to regional economic contexts and suggests an expanded scope for future research to enhance the understanding of sustainable finance's role in corporate ESG outcomes.

Downloads

Download data is not yet available.

References

Su, X., Li, Y., Fang, K., & Long, Y. (2022). Does China's direct investment in “Belt and Road Initiative” countries decrease their carbon dioxide emissions?. Journal of Cleaner Production, 339, 130543.

Ren, X., Zhang, X., Yan, C., & Gozgor, G. (2022). Climate policy uncertainty and firm-level total factor productivity: Evidence from China. Energy Economics, 113, 106209.

Deng, X., Li, W., & Ren, X. (2023). More sustainable, more productive: Evidence from ESG ratings and total factor productivity among listed Chinese firms. Finance Research Letters, 51, 103439.

Li, T. T., Wang, K., Sueyoshi, T., & Wang, D. D. (2021). ESG: Research progress and future prospects. Sustainability, 13(21), 11663.

Sun, X., Zhou, C., & Gan, Z. (2023). Green Finance Policy and ESG Performance: Evidence from Chinese Manufacturing Firms. Sustainability, 15(8), 6781.

Chen, Z., Hu, L., He, X., Liu, Z., Chen, D., & Wang, W. (2022). Green financial reform and corporate ESG performance in China: Empirical evidence from the green financial reform and innovation pilot zone. International Journal of Environmental Research and Public Health, 19(22), 14981.

Gao, W., & Liu, Z. (2023). Green credit and corporate ESG performance: Evidence from China. Finance Research Letters, 55, 103940.

MS, N., & Siddiqui, I. (2022). Green Finance: Perspectives in Sustainable Finance Instruments and ESG Activities.

Lei, N., Miao, Q., & Yao, X. (2023). Does the implementation of green credit policy improve the ESG performance of enterprises? Evidence from a quasi-natural experiment in China. Economic Modelling, 127, 106478.

Wang, S., & Wang, D. (2022). Exploring the relationship between ESG performance and green bond issuance. Frontiers in public health, 10, 897577.

Wang, J., Ma, M., Dong, T., & Zhang, Z. (2023). Do ESG ratings promote corporate green innovation? A quasi-natural experiment based on SynTao Green Finance's ESG ratings. International Review of Financial Analysis, 87, 102623.

Ren, X., Zeng, G., & Zhao, Y. (2023). Digital finance and corporate ESG performance: Empirical evidence from listed companies in China. Pacific-Basin Finance Journal, 79, 102019.

Wang, Z., Chu, E., & Hao, Y. (2024). Towards sustainable development: How does ESG performance promotes corporate green transformation. International Review of Financial Analysis, 91, 102982.

Afanas’ ev, M. P., & Shash, N. N. (2022). ESG Transformation in the Corporate Sector: Systematizing the Global Approach. Studies on Russian Economic Development, 33(6), 707-715.

Zhu, X., Zhou, X., & Zhu Shuang, H. (2021). Urban Green Finance and its influencing factors in China: A Case Study of green bonds. J. Nat. Resour, 36, 3247-3260.

Kong, N., Bao, Y., Sun, Y., & Wang, Y. (2023). Corporations’ ESG for Sustainable Investment in China: The Moderating Role of Regional Marketization. Sustainability, 15(4), 2905.

Zhao, X., Fang, L., & Zhang, K. (2023). Online search attention, firms’ ESG and operating performance. International Review of Economics & Finance, 88, 223-236.

Li, B., Du, J., Yao, T., & Wang, Q. (2023). FinTech and corporate green innovation: An external attention perspective. Finance Research Letters, 58, 104661.

Asif, M., Searcy, C., & Castka, P. (2023). ESG and Industry 5.0: The role of technologies in enhancing ESG disclosure. Technological Forecasting and Social Change, 195, 122806.

Truant, E., Borlatto, E., Crocco, E., & Bhatia, M. (2023). ESG performance and technological change: Current state-of-the-art, development and future directions. Journal of Cleaner Production, 429, 139493.