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ESG performance and firm misconduct: Evidence from R&D manipulation

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  • Chen, Mengtao

Abstract

This study examines the impact of ESG on firm R&D manipulation behaviors by using the panel dataset from 2010 to 2022 in China. The empirical results find that better ESG performance significantly curbs firms' R&D manipulation behavior, and this finding is robust to a set of tests. Mechanism analysis indicates that ESG mitigates R&D manipulation through information effect, governance effect, and resource effect. Expanded analysis shows that ESG plays a complementary role both with internal and external controls in mitigating R&D manipulation.

Suggested Citation

  • Chen, Mengtao, 2024. "ESG performance and firm misconduct: Evidence from R&D manipulation," Economics Letters, Elsevier, vol. 237(C).
    • Handle: RePEc:eee:ecolet:v:237:y:2024:i:c:s0165176524001514
    DOI: 10.1016/j.econlet.2024.111668
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    References listed on IDEAS

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