IDEAS home Printed from https://ideas.repec.org/a/eee/finana/v96y2024ipas1057521924004897.html
   My bibliography  Save this article

How does entrepreneurship promote corporate ESG performance?

Author

Listed:
  • Tian, Tian
  • Chen, Ning

Abstract

Implementing ESG strategies mostly depends on entrepreneurship. The interaction between entrepreneurship and corporate environmental, social, and governance (ESG) performance is examined in this paper. It examines information from A-share listed firms between 2011 and 2022 to understand how entrepreneurship affects business ESG performance. The findings show that encouraging entrepreneurship can effectively improve business ESG performance. Furthermore, good results come from raising general factor productivity, increasing capacity for risk-taking, supporting activities connected to environmentally friendly innovation, and so on. Especially in encouraging major inventions, entrepreneurship is quite successful. Furthermore, the company's ownership and internal control degrees have different mediation effects. Companies with more degrees of internal control capacity and state ownership can intensify the sound of entrepreneurship. This paper confirms the significant impact of entrepreneurship and offers insightful analysis to guide the future development of business ESG activities.

Suggested Citation

  • Tian, Tian & Chen, Ning, 2024. "How does entrepreneurship promote corporate ESG performance?," International Review of Financial Analysis, Elsevier, vol. 96(PA).
    • Handle: RePEc:eee:finana:v:96:y:2024:i:pa:s1057521924004897
    DOI: 10.1016/j.irfa.2024.103557
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1057521924004897
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.irfa.2024.103557?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kizys, Renatas & Mamatzakis, Emmanuel C. & Tzouvanas, Panagiotis, 2023. "Does genetic diversity on corporate boards lead to improved environmental performance?," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 84(C).
    2. Satyabrata Aich & Ayusha Thakur & Deepanjan Nanda & Sushanta Tripathy & Hee-Cheol Kim, 2021. "Factors Affecting ESG towards Impact on Investment: A Structural Approach," Sustainability, MDPI, vol. 13(19), pages 1-14, September.
    3. Wan, Jieru & Yin, Libo & Wu, You, 2024. "Return and volatility connectedness across global ESG stock indexes: Evidence from the time-frequency domain analysis," International Review of Economics & Finance, Elsevier, vol. 89(PB), pages 397-428.
    4. Bose, Sudipta & Minnick, Kristina & Shams, Syed, 2021. "Does carbon risk matter for corporate acquisition decisions?," Journal of Corporate Finance, Elsevier, vol. 70(C).
    5. Laura Chiaramonte & Alberto Dreassi & Claudia Girardone & Stefano Piserà, 2022. "Do ESG strategies enhance bank stability during financial turmoil? Evidence from Europe," The European Journal of Finance, Taylor & Francis Journals, vol. 28(12), pages 1173-1211, August.
    6. Kim, Incheol & Ryou, Ji Woo & Yang, Rong, 2020. "The color of shareholders' money: Institutional shareholders' political values and corporate environmental disclosure," Journal of Corporate Finance, Elsevier, vol. 64(C).
    7. Wang, Juxian & Ma, Mengdi & Dong, Tianyi & Zhang, Zheyuan, 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, Elsevier, vol. 87(C).
    8. Rao, Yanchao & Zhu, Xiuli & Sun, Yulan & Qian, Xiyue, 2024. "CEOs' knowledge integration， entrepreneurship, and corporate innovation: Evidence for China," International Review of Financial Analysis, Elsevier, vol. 91(C).
    9. He, Feng & Guo, Xinyao & Yue, Pengpeng, 2024. "Media coverage and corporate ESG performance: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 91(C).
    10. Avramov, Doron & Cheng, Si & Lioui, Abraham & Tarelli, Andrea, 2022. "Sustainable investing with ESG rating uncertainty," Journal of Financial Economics, Elsevier, vol. 145(2), pages 642-664.
    11. Fang, Mingyue & Nie, Huihua & Shen, Xinyi, 2023. "Can enterprise digitization improve ESG performance?," Economic Modelling, Elsevier, vol. 118(C).
    12. Lian, Yonghui & Ye, Tao & Zhang, Yiyang & Zhang, Lin, 2023. "How does corporate ESG performance affect bond credit spreads: Empirical evidence from China," International Review of Economics & Finance, Elsevier, vol. 85(C), pages 352-371.
    13. Bissoondoyal-Bheenick, Emawtee & Brooks, Robert & Do, Hung Xuan, 2023. "ESG and firm performance: The role of size and media channels," Economic Modelling, Elsevier, vol. 121(C).
    14. Cabreros, David & de la Fuente, Gabriel & Velasco, Pilar, 2024. "From dawn to dusk: The relationship between CEO career horizon and ESG engagement," International Review of Financial Analysis, Elsevier, vol. 93(C).
    15. Lin, Chunpeng & Yang, Jinqiang, 2022. "Entrepreneur’s incentives for risk-taking and short-term debt," International Review of Financial Analysis, Elsevier, vol. 84(C).
    16. Kong, Dongmin & Liu, Chenhao, 2024. "Centralization and regulatory enforcement: Evidence from personnel authority reform in China," Journal of Public Economics, Elsevier, vol. 229(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yang, Yuan & Wang, Baomin & Su, Xingyu, 2024. "Judicial quality and corporate ESG performance: Evidence from the establishment of circuit courts," Finance Research Letters, Elsevier, vol. 65(C).
    2. Wang, Zhen & Chu, Erming & Hao, Yukai, 2024. "Towards sustainable development: How does ESG performance promotes corporate green transformation," International Review of Financial Analysis, Elsevier, vol. 91(C).
    3. Shi, Dinghao & Li, Zhiqiang & Huang, Yan & Tan, Haoyu & Ling, Yixin & Liu, Yunuo & Tu, Yongqian, 2024. "Market competition and ESG performance-based on the mediating role of board independence," International Review of Financial Analysis, Elsevier, vol. 96(PA).
    4. Zhang, Kai & Wan, Shan & Zhou, Yuehui, 2024. "Executive compensation, internal governance and ESG performance," Finance Research Letters, Elsevier, vol. 66(C).
    5. Ding, Liuqi & Cui, Zixuan & Li, Jiali, 2024. "Risk management and corporate ESG performance: The mediating effect of financial performance," Finance Research Letters, Elsevier, vol. 69(PB).
    6. Han, Wei & Wu, Di, 2024. "ESG ratings, business credit acquisition, and corporate value," International Review of Financial Analysis, Elsevier, vol. 95(PA).
    7. Marie, Mohamed & Qi, Baolei & Elgammal, Mohammed & Elnahass, Marwa, 2024. "A more sustainable future: Can politically connected CEOs spur the nexus between ESG performance and firm financial performance?," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 96(C).
    8. Geng, Yuan & Chen, Jinyu & Liu, Ran, 2024. "ESG rating disagreement and corporate green innovation bubbles: Evidence from Chinese A-share listed firms," International Review of Financial Analysis, Elsevier, vol. 95(PB).
    9. Liu, Xiangqiang & Liu, Jiayi & Liu, Jia & Zhai, Qiong, 2024. "Can investor-firm interactions mitigate ESG rating divergence? Evidence from China," International Review of Financial Analysis, Elsevier, vol. 96(PA).
    10. Chen, Chaofan & Li, Wen-Bo & Zhang, Heng, 2024. "How do property rights affect corporate ESG performance? The moderating effect of green innovation efficiency," Finance Research Letters, Elsevier, vol. 64(C).
    11. Naseer, Mirza Muhammad & Guo, Yongsheng & Bagh, Tanveer & Zhu, Xiaoxian, 2024. "Sustainable investments in volatile times: Nexus of climate change risk, ESG practices, and market volatility," International Review of Financial Analysis, Elsevier, vol. 95(PB).
    12. Eskantar, Marianna & Zopounidis, Constantin & Doumpos, Michalis & Galariotis, Emilios & Guesmi, Khaled, 2024. "Navigating ESG complexity: An in-depth analysis of sustainability criteria, frameworks, and impact assessment," International Review of Financial Analysis, Elsevier, vol. 95(PA).
    13. Ruan, Lei & Li, Jianing & Huang, Siqi, 2024. "News or noise? ESG disclosure and stock price synchronicity," International Review of Financial Analysis, Elsevier, vol. 95(PB).
    14. Huang, Qinghua & Yuan, Wei & Zheng, Chengsi & Chen, Kaiming & Chen, Xiding & Wang, Yi & Li, Changke, 2024. "Can Confucianism improve ESG performance?," Finance Research Letters, Elsevier, vol. 64(C).
    15. Gui, Zhou & Lu, Xiaoyu, 2024. "Strengthening of rule of law and ESG performance of corporations," Finance Research Letters, Elsevier, vol. 66(C).
    16. Li, Ruiqian & Wu, Haiyun & Zhong, Ma & Lan, Hao, 2024. "Strategic tone management in ESG reports and ESG risk," International Review of Financial Analysis, Elsevier, vol. 96(PA).
    17. Guo, Kun & Li, Yichong & Zhang, Yunhan & Chen, Yingtong & Ma, Yanran, 2024. "Cross-country risk spillovers of ESG stock indices: Dynamic patterns and the role of climate transition risks," International Review of Financial Analysis, Elsevier, vol. 95(PB).
    18. Qian, Binsheng & Poshakwale, Sunil & Tan, Yusen, 2024. "‘E’ of ESG and firm performance: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 96(PB).
    19. Zhu, Yan & Zhang, Zhuyun, 2024. "Supply chain digitalization and corporate ESG performance: Evidence from supply chain innovation and application pilot policy," Finance Research Letters, Elsevier, vol. 67(PA).
    20. Li, Menghan & Chen, Qi, 2024. "Executive pay gap and corporate ESG greenwashing: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 95(PA).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finana:v:96:y:2024:i:pa:s1057521924004897. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620166 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.