Government Subsidies, ESG, and Managerial Performance : Evidence from China
Government Subsidies, ESG, and Managerial Performance : Evidence from China
김전전(School of Business, Yonsei University); 박세열(School of Business, Yonsei University); 서승범(School of Business, Yonsei University); 김진희(School of Business Administration, Hongik University)
27권 3호, 259~278쪽
초록
This study investigates the relationship between ESG performance andmanagerial financial performance in Chinese listed firms from 2015 to 2021. We find a robust positive relationship between ESG performance andmanagerial financial performance. Notably, the impact of ESG performanceon financial outcomes is more pronounced when using domestic ESG ratingscompared to international ratings. Moreover, our analysis reveals thatsuperior ESG performance predicts greater future government subsidies,indicating the government’s role in incentivizing corporate ESG investments. Lastly, the intermediary effect of government subsidies attenuates thepositive relationship between ESG performance and financial performance,suggesting nuanced implications for policy and managerial decision-making.
Abstract
This study investigates the relationship between ESG performance andmanagerial financial performance in Chinese listed firms from 2015 to 2021. We find a robust positive relationship between ESG performance andmanagerial financial performance. Notably, the impact of ESG performanceon financial outcomes is more pronounced when using domestic ESG ratingscompared to international ratings. Moreover, our analysis reveals thatsuperior ESG performance predicts greater future government subsidies,indicating the government’s role in incentivizing corporate ESG investments. Lastly, the intermediary effect of government subsidies attenuates thepositive relationship between ESG performance and financial performance,suggesting nuanced implications for policy and managerial decision-making.
- 발행기관:
- 한국전문경영인학회
- 분류:
- 경영교육