‘E’ of ESG and firm performance: evidence from China

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dc.contributor.authorQian, Binsheng
dc.contributor.authorPoshakwale, Sunil
dc.contributor.authorTan, Yusen
dc.date.accessioned2024-11-27T11:46:44Z
dc.date.available2024-11-27T11:46:44Z
dc.date.freetoread2024-11-27
dc.date.issued2024-11
dc.date.pubOnline2024-11-09
dc.description.abstractFollowing the ESG rating divergence reported in the previous research studies, we develop a novel firm-level Green Commitment (GC) index by incorporating new dimensions of environmental management and governance. We construct GC scores for all A-share listed companies in China from 2015 to 2021 and analyze whether firms with greater environmental commitment exhibit improvements in their future performance. Our results show that firms with high GC scores achieve higher stock returns without incurring extra risk. Additionally, a strong environmental commitment can enhance operating performance by mitigating financial constraints. The evidence supports the view that environmental investing contributes to the creation of positive shareholder value. Our GC index can be applied more widely to resolve the mixed evidence on the value implications of corporate environmental commitments.
dc.description.journalNameInternational Review of Financial Analysis
dc.identifier.citationQian B, Poshakwale S, Tan Y. (2024) ‘E’ of ESG and firm performance: evidence from China. International Review of Financial Analysis, Volume 96, Part B, November 2024, Article number 103751
dc.identifier.elementsID556060
dc.identifier.issn1057-5219
dc.identifier.paperNo103751
dc.identifier.urihttps://doi.org/10.1016/j.irfa.2024.103751
dc.identifier.urihttps://dspace.lib.cranfield.ac.uk/handle/1826/23226
dc.identifier.volumeNo96
dc.languageEnglish
dc.language.isoen
dc.publisherElsevier
dc.publisher.urihttps://www.sciencedirect.com/science/article/abs/pii/S1057521924006835?via%3Dihub
dc.rightsAttribution 4.0 Internationalen
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/
dc.subject3502 Banking, Finance and Investment
dc.subject35 Commerce, Management, Tourism and Services
dc.subject3507 Strategy, Management and Organisational Behaviour
dc.subjectFinance
dc.subject3501 Accounting, auditing and accountability
dc.subject3502 Banking, finance and investment
dc.subject3801 Applied economics
dc.subjectEnvironmental investing
dc.subjectESG divergence
dc.subjectFirm performance
dc.subjectFinancial constraints
dc.subjectIndustry competition
dc.subjectState ownership
dc.title‘E’ of ESG and firm performance: evidence from China
dc.typeArticle
dc.type.subtypeJournal Article
dcterms.dateAccepted2024-10-31

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