Does ESG performance promote total factor productivity? Evidence from China

Ma, Jiangming; Gao, Di; Sun, Jun

doi:10.3389/fevo.2022.1063736

Cited by 12 publications

(8 citation statements)

References 53 publications

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“…To test the relationship between ESG performance and stock liquidity, we followed Ma et al (2022) to construct the following baseline regression model:…”

Section: Methodsmentioning

confidence: 99%

Does ESG performance promote vitality of capital market? Analysis from the perspective of stock liquidity

Chen

Liu

Jiang

et al. 2023

Front. Environ. Sci.

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Environmental, Social, and Governance (ESG) is changing from a concept to corporate soft power. Can this improve corporate performance in capital markets? There is little literature linking environmental, Social, and Governance performance to stock liquidity. Therefore, It is of urgent theoretical and practical importance to study the impact of environmental, Social, and Governance performance on stock liquidity. Using Chinese A-share listed companies from 2015 to 2020 as a sample to empirically examine the impact of environmental, Social, and Governance performance on stock liquidity and its mechanism. We find that environmental, Social, and Governance performance has a significant positive impact on listed companie’s stock liquidity. This conclusion was validated after conducting a series of robustness tests. Mechanism analysis shows that environmental, Social, and Governance performance can promote stock liquidity by reducing agency costs, increasing the proportion of foreign ownership, and improving corporate reputation. The heterogeneity analysis shows that environmental, Social, and Governance performance in state-owned enterprises, heavily polluting enterprises, and enterprises in areas with low degrees of marketisation has a more significant positive promoting effect on stock liquidity. This study expands the research on environmental, Social, and Governance performance and has implications for promoting the development of environmental, Social, and Governance practices.

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“…To test the relationship between ESG performance and stock liquidity, we followed Ma et al (2022) to construct the following baseline regression model:…”

Section: Methodsmentioning

confidence: 99%

Does ESG performance promote vitality of capital market? Analysis from the perspective of stock liquidity

Chen

Liu

Jiang

et al. 2023

Front. Environ. Sci.

View full text Add to dashboard Cite

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“…To test hypothesis H1: enterprises can improve total factor productivity by practicing the ESG concept, enhancing their long-term value, and realizing a win-win of social value and commercial value. Based on the theoretical models of Xu and Zhao [ 26 ], Ma, Gao [ 30 ], this paper constructs the following model to reflect the impact of ESG on TFP: …”

Section: Variables Models and Datamentioning

confidence: 99%

Corporate ESG and total factor productivity: Will the fulfillment of social responsibility sacrifice productivity?

Chen

2024

PLoS ONE

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With the increasing prominence of climate and energy issues, enterprises, as the micro-subjects of economic activities, need to pay attention to environmental responsibility to promote sustainable and high-quality economic development. However, one of the crucial controversies is whether enterprises will sacrifice efficiency to fulfill their environmental responsibilities. To try our best to answer the controversy, this paper explores the impact of ESG on total factor productivity and its mechanism. The research conclusion shows that Chinese enterprises fulfilling ESG responsibilities can improve staff efficiency, reduce financing costs, ease financing constraints, and increase innovation investment, thus effectively improving total factor productivity. Compared to non-state-owned enterprises, this effect is more significant in state-owned enterprises. In addition, the promotion of ESG construction on the total factor productivity of enterprises also presents specific acceleration characteristics. This shows that in the socialist market economy environment, there is an obvious "social responsibility dividend" in the implementation of the ESG concept by Chinese enterprises, which is helpful to enhance their long-term value and realize a win-win of social value and commercial value. The conclusions of this study help deal correctly with the relationship between business value and social value of enterprises and provide inspiration for promoting healthy and sustainable economic development.

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“…However, there is a significant positive correlation between ESG performance and total asset turnover (TAT) and equity multiplier (A/E) [54]. Ma and Sun found that firms with high ESG performance can increase total factor productivity by alleviating financing constraints and enhancing innovation levels [16]. Velte P found that ESG performance is negatively related to accrual-based surplus management but does not affect actual surplus management in a sample of German firms.…”

Section: Esg Performancementioning

confidence: 99%

“…Ali et al, Lorenzo et al, and Fan et al argue that the development of information technology has significantly increased tax authorities' ability to collect taxes, inhibiting corporate tax avoidance and increasing their tax burden [11][12][13]. In the existing literature on ESG performance, scholars have mainly focused on the impact of ESG performance on financial performance [14], corporate value [15], financing constraints, and other aspects of economic consequences [16] and less on the factors influencing ESG performance.…”

Section: Introductionmentioning

confidence: 99%

Impact of Tax Administration on ESG Performance—A Quasi-Natural Experiment Based on China’s Golden Tax Project III

Ling

Zhang

2023

Sustainability

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With the growing importance of sustainable development, ESG is receiving attention from governments, firms, and investors. This study uses the reform of China’s tax inspection system—Golden Tax Project III—as a quasi-natural experiment to examine the impact of the enhanced tax administration on firms’ ESG performance with a sample of Chinese A-share listed companies from 2008 to 2020. The findings, which were identified via a time-varying difference-in-differences (time-varying DID) approach, indicate that Golden Tax Project III significantly reduces firms’ ESG performance and has the most significant impact on the environmental dimension and the minor impact on the social dimension. The negative impact of Golden Tax Project III on ESG performance is more substantial among non-state firms and firms in regions with higher levels of marketization than other firms. The mechanism test shows that Golden Tax Project III negatively affects ESG performance by increasing the tax burden on firms. The moderating effect test shows that tax incentives can effectively mitigate the dampening effect of strengthened tax administration on ESG performance. This study enriches the literature on the factors influencing firms’ ESG performance to a certain extent; it helps the government use taxation policies to inspire firms to improve ESG performance, contributing to sustainable development.

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Does ESG performance promote total factor productivity? Evidence from China

Cited by 12 publications

References 53 publications

Does ESG performance promote vitality of capital market? Analysis from the perspective of stock liquidity

Does ESG performance promote vitality of capital market? Analysis from the perspective of stock liquidity

Corporate ESG and total factor productivity: Will the fulfillment of social responsibility sacrifice productivity?

Impact of Tax Administration on ESG Performance—A Quasi-Natural Experiment Based on China’s Golden Tax Project III

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