The impact of ESG performance on firms’ technological innovation: evidence from China
Technological innovation is crucial for creating sustainable corporate value and shaping competitive advantage in the market. ESG, as an indicator of corporate value practices, plays a significant role in enterprise technological innovation. However, there is little empirical evidence to support thi...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Frontiers Media S.A.
2024-02-01
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| Series: | Frontiers in Environmental Science |
| Subjects: | |
| Online Access: | https://www.frontiersin.org/articles/10.3389/fenvs.2024.1342420/full |
| _version_ | 1797303349917253632 |
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| author | Xiaoyun Zhang Wenjun Li Tonghui Ji Huimin Xie |
| author_facet | Xiaoyun Zhang Wenjun Li Tonghui Ji Huimin Xie |
| author_sort | Xiaoyun Zhang |
| collection | DOAJ |
| description | Technological innovation is crucial for creating sustainable corporate value and shaping competitive advantage in the market. ESG, as an indicator of corporate value practices, plays a significant role in enterprise technological innovation. However, there is little empirical evidence to support this claim. This study analyzes the relationship between ESG performance and technological innovation in Chinese A-share listed enterprises from 2011 to 2021. The statistical data shows that strong ESG performance has a significant positive impact on corporate technological innovation. ESG performance can promote corporate technological innovation through external mechanisms, such as enhancing corporate network location and increasing institutional shareholding. Additionally, internal mechanisms, such as reducing labor costs and easing financing constraints, can also promote corporate technological innovation. The impact of ESG performance on corporations exhibits heterogeneity, with ESG performance promoting innovation more strongly among labor-intensive firms, non-state-owned firms, highly competitive industries, and mature firms. Based on the study results, it is recommended that enterprises actively practice ESG development concepts, optimize their equity structure, strengthen information communication with stakeholders, and alleviate problems such as information asymmetry to improve their technological innovation. The government should focus on enterprise characteristics, improve ESG development policies, and promote enterprise innovation through ESG performance. |
| first_indexed | 2024-03-07T23:51:31Z |
| format | Article |
| id | doaj.art-e35c21a35dea4f7ca453a5f88618c982 |
| institution | Directory Open Access Journal |
| issn | 2296-665X |
| language | English |
| last_indexed | 2024-03-07T23:51:31Z |
| publishDate | 2024-02-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Environmental Science |
| spelling | doaj.art-e35c21a35dea4f7ca453a5f88618c9822024-02-19T04:55:43ZengFrontiers Media S.A.Frontiers in Environmental Science2296-665X2024-02-011210.3389/fenvs.2024.13424201342420The impact of ESG performance on firms’ technological innovation: evidence from ChinaXiaoyun Zhang0Wenjun Li1Tonghui Ji2Huimin Xie3School of Economics and Finance, Xi’an International Studies University, Xi’an, ChinaSchool of Economics and Finance, Xi’an International Studies University, Xi’an, ChinaSchool of Economics and Business Administration, Central China Normal University, Wuhan, ChinaBusiness College, Jiangxi Institute of Fashion Technology, Nanchang, Jiangxi, ChinaTechnological innovation is crucial for creating sustainable corporate value and shaping competitive advantage in the market. ESG, as an indicator of corporate value practices, plays a significant role in enterprise technological innovation. However, there is little empirical evidence to support this claim. This study analyzes the relationship between ESG performance and technological innovation in Chinese A-share listed enterprises from 2011 to 2021. The statistical data shows that strong ESG performance has a significant positive impact on corporate technological innovation. ESG performance can promote corporate technological innovation through external mechanisms, such as enhancing corporate network location and increasing institutional shareholding. Additionally, internal mechanisms, such as reducing labor costs and easing financing constraints, can also promote corporate technological innovation. The impact of ESG performance on corporations exhibits heterogeneity, with ESG performance promoting innovation more strongly among labor-intensive firms, non-state-owned firms, highly competitive industries, and mature firms. Based on the study results, it is recommended that enterprises actively practice ESG development concepts, optimize their equity structure, strengthen information communication with stakeholders, and alleviate problems such as information asymmetry to improve their technological innovation. The government should focus on enterprise characteristics, improve ESG development policies, and promote enterprise innovation through ESG performance.https://www.frontiersin.org/articles/10.3389/fenvs.2024.1342420/fullESGfirm network locationlabor costsfirm technological innovationinstitutional shareholdingfinancing constraints |
| spellingShingle | Xiaoyun Zhang Wenjun Li Tonghui Ji Huimin Xie The impact of ESG performance on firms’ technological innovation: evidence from China Frontiers in Environmental Science ESG firm network location labor costs firm technological innovation institutional shareholding financing constraints |
| title | The impact of ESG performance on firms’ technological innovation: evidence from China |
| title_full | The impact of ESG performance on firms’ technological innovation: evidence from China |
| title_fullStr | The impact of ESG performance on firms’ technological innovation: evidence from China |
| title_full_unstemmed | The impact of ESG performance on firms’ technological innovation: evidence from China |
| title_short | The impact of ESG performance on firms’ technological innovation: evidence from China |
| title_sort | impact of esg performance on firms technological innovation evidence from china |
| topic | ESG firm network location labor costs firm technological innovation institutional shareholding financing constraints |
| url | https://www.frontiersin.org/articles/10.3389/fenvs.2024.1342420/full |
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