Environmental, social and governance performance, corporate transparency, and credit rating: Some evidence from Chinese A-share listed companies

Li, Chao; Wu, Mian; Chen, Xi; Huang, Wenli

doi:10.1016/j.pacfin.2022.101806

Cited by 34 publications

(13 citation statements)

References 37 publications

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“…First, increased transparency of firm information can prevent and detect earnings manipulation and significantly improve corporate governance (Mahrani & Soewarno, 2018). On the one hand, highly transparent earnings' information can transmit the solvency, profitability, and future operating positions of firms to the capital market, which helps creditors to monitor firms (Li et al., 2022), improve creditors' willingness to fund, relieve firms' financing pressure, and improve firm performance.…”

Section: Empirical Results and Analysismentioning

confidence: 99%

Association between state ownership participation and the performance of private firms: Evidence from China

Niu

Zhang

2023

Econ of Transit and Inst Chang

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The mixed ownership reform aims to improve the performance of firms, which is important for optimizing the overall economic layout and promoting firms to sustainable development. Therefore, an important issue is whether state ownership participation in private firms improves their performance in the context of the mixed ownership reform. This study investigates whether and how state ownership participation affects the performance of private firms using Chinese listed private firms from 2010 to 2020. The results of this study indicate that state ownership participation significantly eliminates the performance of private firms. Further results show that there is a U‐shaped relationship between the mixed ownership model and the performance of private firms. At the same time, firm transparency and financing constraints play a negative moderating role in the relationship between the mixed ownership model and the performance of private firms. The findings of this study enrich the literature on factors influencing the performance of private firms, provide empirical evidence for mixed ownership reforms in China, and further reveal the characteristics of Chinese accounting practices and the logical rules behind the operation of these practices.

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Section: Empirical Results and Analysismentioning

confidence: 99%

Association between state ownership participation and the performance of private firms: Evidence from China

Niu

Zhang

2023

Econ of Transit and Inst Chang

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“…Firstly, ESG ratings attract potential investors to obtain capital for the company, preventing underinvestment in innovation caused by the high‐input of new projects. Third‐party rating agencies publish specific information related to the performance of corporate environmental, social, and governance responsibilities, which supplements financial information and improves the transparency of enterprises (Houston & Shan, 2021; Li et al, 2022; Schiehll & Kolahgar, 2020). Transparency builds trust between enterprises and capital providers (Kanagaretnam et al, 2010), which enriches the channels for enterprises to obtain innovation funding by lowering financing costs from external investors (Meng et al, 2021).…”

Section: Theoretical Backgroundsmentioning

confidence: 99%

The impact of environmental, social, and governance ratings on corporate innovation: From the perspective of informal institutions

Zhu,

Li,

Wang

2024

Manage Decis Econ

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The significance of rating events in capital markets has garnered considerable attention from investors, experts, and academics, with third‐party rating agencies being one of the topics. We focus on the impact of environmental, social, and governance (ESG) ratings on corporate innovation and confirm a positive relationship. We also believe that ESG ratings play a governance role as informal institutions in stimulating corporate innovation. The efficacy of ESG ratings in promoting corporate innovation is dependent on a favorable information environment that is devoid of negative influences. We confirm the synergistic effect of ESG ratings with other informal institutions and the substitution effect with formal institutions.

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“…The three alternative CSR ratings are Huazheng ESG ratings (CSR-Huazheng; Panel A), Bloomberg ESG ratings (CSR-Bloomberg; Panel B), and Rankins CSR ratings (CSR-RKS; Panel C). Although they are also used in recent CSR studies (e.g., Chang et al 2023;Chen and Xie 2022;Chen et al 2023;Ko et al 2020;Li et al 2022;McGuinness et al 2017;Wang et al 2022), we construct the CSR rating for our major tests based on Hexun's CSR ratings for two reasons. First, although both Bloomberg and Rankins provide ratings for individual CSR dimensions, their ratings only cover a limited number of listed firms; and, therefore, 11 The Atlas is a joint publication by the Australian Academy of the Humanities and the Chinese Academy of Social Sciences.…”

Section: Alternative Measures Of Csr Ratingmentioning

confidence: 99%

Non‐Investor Institutions' Site Visits and Corporate Social Responsibility*

Tam,

Tian

2023

Asia-Pac J of Fin Stud

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Previous studies show that institutional investors play an important role in shaping corporate social responsibility (CSR). The role of non‐investor institutions such as media firms is largely unexplored, especially in China. This study examines the impact of site visits by non‐investor institutions on visited firms' CSR ratings (excluding corporate governance (CG)) in China. The baseline result shows that site visits are associated with improved CSR ratings. The result is robust after controlling for potential endogeneity issues. It is also robust with alternative CSR ratings by different data providers. The channel test suggests that non‐investor institutions' site visits improve CSR ratings by increasing both CSR disclosure and actual CSR activities. To highlight the difference between our study and recent research on corporate site visits by institutional investors, we perform a further test to show that non‐investor institutions' visits improve the non‐CG aspect but not the CG aspect of CSR ratings while institutional investors' visits improve the CG aspect but not the non‐CG aspect of CSR ratings.

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Environmental, social and governance performance, corporate transparency, and credit rating: Some evidence from Chinese A-share listed companies

Cited by 34 publications

References 37 publications

Association between state ownership participation and the performance of private firms: Evidence from China

Association between state ownership participation and the performance of private firms: Evidence from China

The impact of environmental, social, and governance ratings on corporate innovation: From the perspective of informal institutions

Non‐Investor Institutions' Site Visits and Corporate Social Responsibility*

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