IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v73y2025ics1544612324016593.html
   My bibliography  Save this article

ESG performance and green total factor productivity

Author

Listed:
  • Ma, Xiaoyan
  • Zhou, Aimin
  • Chi, Chuenyu

Abstract

Environmental, social, and governance (ESG) practices in the corporate sector have sparked debate over their effectiveness. However, the true impact of ESG initiatives on enhancing green total factor productivity (GTFP) in the real economy remains unclear. This study clarifies this relationship by examining data from China's A-share listed companies from 2009 to 2020. Using the super-efficiency slack-based measure (SBM) model and Global Malmquist–Luenberger index, we assess how ESG performance influences GTFP. Findings reveal that ESG efforts are crucial in enhancing GTFP, primarily by encouraging green innovation and reducing financing barriers. A detailed analysis indicates that ESG practices significantly advance green technology efficiency, while their impact on green technology progress is less pronounced. Among the ESG dimensions, governance is identified as the key driver of green transformation, the environmental component shows a delayed influence, and the social aspect appears to have no immediate impact on GTFP.

Suggested Citation

  • Ma, Xiaoyan & Zhou, Aimin & Chi, Chuenyu, 2025. "ESG performance and green total factor productivity," Finance Research Letters, Elsevier, vol. 73(C).
    • Handle: RePEc:eee:finlet:v:73:y:2025:i:c:s1544612324016593
    DOI: 10.1016/j.frl.2024.106630
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612324016593
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2024.106630?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.

    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:finlet:v:73:y:2025:i:c:s1544612324016593. 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.

    We have no bibliographic references for this item. You can help adding them by using 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/frl .

    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.