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Does ESG Performance Promote High-Quality Development of Enterprises in China? The Mediating Role of Innovation Input

Author

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  • Ge Ge

    (School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China)

  • Xiang Xiao

    (School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China
    Research Center for Central and Eastern Europe, Beijing Jiaotong University, Beijing 100044, China)

  • Zhenzhu Li

    (School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China)

  • Qinghui Dai

    (School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China)

Abstract

Environmental, Social and Governance (ESG) concept has internal consistency with the high-quality development of China’s economy theoretically, and implementing ESG concept is an important way to achieve sustainable economic development. However, whether ESG performance can promote the high-quality development from the perspective of micro enterprises is rarely studied. Thus, we explore the impact and mechanism of ESG performance on enterprises’ high-quality development. The empirical results indicate that good ESG performance is conducive to promoting high-quality development of enterprises. Environmental performance and social performance can promote high-quality development of enterprises more than corporate governance performance. The mechanism results show that innovation input plays a medicating role between ESG performance and enterprises’ high-quality development. The additional analysis suggest that the promoting effect is more obvious in state-owned enterprises, environmentally sensitive enterprises and enterprises with less financing constraints. This study has enlightenment significance for enterprises to value ESG performance and government departments to formulate relevant policies.

Suggested Citation

  • Ge Ge & Xiang Xiao & Zhenzhu Li & Qinghui Dai, 2022. "Does ESG Performance Promote High-Quality Development of Enterprises in China? The Mediating Role of Innovation Input," Sustainability, MDPI, vol. 14(7), pages 1-24, March.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:7:p:3843-:d:778805
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    7. Lee, Chien-Chiang & Tang, Manting & Lee, Chi-Chuan, 2023. "Reaping digital dividends: Digital inclusive finance and high-quality development of enterprises in China," Telecommunications Policy, Elsevier, vol. 47(2).
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