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Environmental science and pollution research international
Nov, 2023;30 (51): 110499-110514.

Green finance and environmental, social, and governance: evidence from Chinese listed companies.

Jing Wu, Chee Yoong Liew
Author Information
  1. Jing Wu: Graduate Business School, UCSI University, 56000, Kuala Lumpur, Malaysia.
  2. Chee Yoong Liew: Faculty of Business and Management, UCSI University, 56000, Kuala Lumpur, Malaysia. liewcy@ucsiuniversity.edu.my. ORCID
PMID: 37792189 DOI: 10.1007/s11356-023-30139-x

Abstract

In recent years, academics have paid more attention to green finance, and public companies have reached a broad consensus on the concept of timely environmental, social, and governance (ESG) disclosure. Due to the close relationship between green finance and ESG, this presents an opportunity to determine whether green finance compels companies to actively disclose ESG. The sample for this study consists of China's non-financial A-share listed companies from 2010 to 2021, and the empirical findings demonstrate that green finance can positively influence the ESG performance of listed companies. Through an analysis of heterogeneity, this study reaches the following conclusions: state-owned enterprises, heavy pollution companies, and companies in low-carbon pilot cities perform better in terms of green finance's role in promoting ESG scoring. This study also introduces market concentration and social trust as the moderating variables, enriching the green finance research framework. Through the analysis of moderating variables, the 'black box' effect of green finance on ESG is disclosed, providing theoretical support for the government and companies to better comprehend the policy effect as well as a reference for reform and experimental promotion of green finance.

Keywords

China ESG Green finance Heterogeneity Market concentration Social trust

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MeSH Term

Carbon
China
Cities
Consensus
Economic Development
Environmental Policy
Sustainable Development
Commerce

Chemicals

Carbon
Journal Article

Word Cloud

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