The role of ESG performance during times of financial crisis: Evidence from COVID-19 in China

The impact and spatial spillover effect of traditional culture on urban green innovation: Empirical evidence from China

The issues of resource scarcity and environmental pollution has become huge challenges that all of humanity faces together. To resolve the issue, promoting urban green innovation capacity is important. This study uses 189 prefecture-level cities and above in China from 2011 to 2020 as samples, and empirically test the impact and spatial spillover effect of traditional culture on urban green innovation. This study finds that: (1) Traditional culture can improve the local green innovation and positively impact the green innovation in neighboring cities by radiation effect, and the conclusion remains valid after robustness tests; (2) Talent flow and data flow negatively moderate the positive impact of traditional culture on green innovation in local cities. In addition, from a dynamic perspective, traditional culture has a negative impact on green innovation in neighboring cities because of the siphon effect; (3) The spatial spillover effect of traditional culture on urban green innovation shows distinct heterogeneity due to the different regions and whether it is a low-carbon pilot city. This study verifies the important value of Chinese traditional culture in urban sustainable development, which is of great significance for the protection and inheritance of traditional culture and the improvement of urban green innovation.

Effects of Environment, Social, and Governance (ESG) Disclosures on ESG Scores: Investigating the Role of Corporate Governance for Publicly Traded Turkish Companies

The world has experienced climate-related issues, which increase the importance of ESG disclosures and corporate governance (CG) of companies, which take place at the heart of economies. Therefore, improving ESG disclosures and CG practices becomes significant to combat climate change at the company level. Considering that Türkiye restructured ESG disclosures in 2022, this study investigates the role of CG on the nexus between ESG scores of publicly traded companies (PTC) and ESG reports. So, the study analyzes 102 PTC (full sample), 51 PTC in Borsa Istanbul Corporate Governance Index (in-sample), and the remaining 51 PTC (out-sample) using ESG disclosures of 2022 and applying novel super learner (SL) algorithm. Our results show that (i) SL has a higher prediction performance reaching ∼94.3%; (ii) the environment (governance) layer has the highest (lowest) total relative importance (contribution) to ESG scores in all samples; (iii) C8, S6, and E5 are the most important ESG principles in the full sample, in-sample, and out-sample, respectively; (iv) the contribution of each ESG principles to the total ESG scores varies by sample; (v) CG plays a smoothing role for the relative importance of each ESG principle, while the relative importance in the out-sample shows much higher volatility. Overall, the study reveals the non-linear contributions of ESG principles on ESG scores and suggests that PTC should prioritize highly important ESG principles, consider the moderating role of CG on the link between ESG scores and ESG disclosures, and use ESG disclosures as a strategic tool to develop ESG scores and disclosures.

Improve carbon emission efficiency: What role does the ESG initiatives play?

Driven by the "dual carbon" goal, it is essential to investigate whether companies can enhance carbon emission efficiency by improving Environmental, Social, and Governance (ESG) performance. This study investigates the relationship between ESG ratings and carbon emission efficiency among Chinese A-share listed companies. The study reveals that a higher ESG rating significantly improves carbon efficiency. Mechanism studies indicate that the effect of ESG mainly comes from easing financing constraints, promoting green innovation, and strengthening supervision. Additionally, the study finds that the impact of ESG on carbon emission efficiency is more pronounced in non-heavy polluting and non-state-owned enterprises. Economic policy uncertainty diminishes the positive effects of ESG initiatives on carbon efficiency, while enhanced governmental concerns to environmental significantly bolsters these impacts. This paper offers empirical insights that can inform adjustment of policies concerning ESG performance and carbon emission.

The impact of top managers' military experience on enterprises' ESG performance: Evidence from Chinese listed enterprise

Sustainable development is crucial for enterprises' long-term development and influences broader socio-economic outcomes. The ESG performance is essential for assessing enterprises' sustainable development. Executives, as crucial implementers of corporate strategy, play an indispensable role in the pursuit of sustainable development. However, the impact of executives' military background on enterprise ESG performance remains understudied and lacks consensus in the existing literature. Therefore, this study examines the logical relationship between top managers' military experience and Chinese enterprises' performance concerning environmental protection, social responsibility and corporate governance (ESG) using data from 4543 publicly traded companies between 2010 and 2021. The results demonstrate that top managers' military experience is positively correlated with enterprises' ESG performance. The promotional impact of the baseline regression indicates that the effect is primarily imparted through enterprises' governance, including profit, total revenue and net profit. Heterogeneity tests show that top managers' military experience is a more effective means to promote enterprises' ESG performance in high research and development investing enterprises, small enterprises, those with female directors and enterprises in central and western China. This study not only enriches the understanding of the economic implications of executive military experience, but also provides theoretical support for enterprises to formulate relevant policies and construct management teams to improve their ESG performance and achieve sustainable development.

A pathway towards corporate sustainability: Does media attention matter?

Examining informal institutional drivers of corporate sustainability is crucial. This study employs a sample of A-share listed firms in China from 2007 to 2020 to empirically examine the relationship between media coverage and ESG performance. It is demonstrated that media attention enhances corporate accountability, especially the print media and positive attention. And environmental investments and green innovation are the main mechanisms. It also reveals that media attention has a greater impact on larger firms, those with better internal controls, firms located in the eastern region, and manufacturing firms. Our findings help deepen the understanding of media's role in corporate development and highlight how informal institutions can promote sustainable economic growth in developing countries.

Environmental, social and governance performance: Can and how it improve internationalization of Chinese A-share listed enterprises

As an important enterprises' practice in implementing the UN 2030 sustainable development, environmental, social, and governance (ESG) performance has drawn escalating attention from government, business and academia. This focus substantially impacts internationalization of enterprises. This paper tries to provide quantitative evidence of the impact of ESG performance of Chinese A-share listed companies on their international operation from 2009 to 2021. The results show that: (i) the ESG performance of listed enterprises exercise a significant positive impact on the internationalization operation. (ii) The effect of ESG performance on enterprises internationality is driven by increasing total factor productivity, enterprise reputation, and green innovation, as well as by mitigating financing constraint. (iii) Good ESG performance significantly boosts enterprise internationalization for non-heavy polluting, large-scale enterprises. This effect is also pronounced for enterprises with local government reports featuring a high frequency of environmental terms or those in high-tech industries.

Addressing environment, social and governance (ESG) investment in China: Does board composition and financing decision matter?

This study examined the link between board composition and environment, social and governance (ESG) investment, and how financing decisions moderate this nexus. The study constructed hypotheses using insights derived from stakeholder and agency theories. We used secondary data from 2010 to 2022 to conduct an empirical analysis using the system Generalized Method of Moments (GMM) and Fixed Effect (FE) estimators. This study found a positive and significant relationship between board independence, sustainability committee, gender diversity, managerial ownership, board meetings and ESG investment. We also found a negative connection between CEO duality, board size, foreign nationals on the board, annual remuneration, and ESG investment. Furthermore, financing decisions significantly moderated the relationship between board composition and ESG investment. The results confirm the importance of board composition and financing decisions in ESG investment in Chinese manufacturing firms. The results show that splitting the CEO and chairperson roles and frequent board meetings can improve a company's ESG investment. Policymakers should facilitate company operations by providing regulations for ESG investment.

The ESG performance influence mechanism analysis-based on empirical analysis

ESG has emerged as a prominent method for evaluating enterprises, gaining increasing importance in recent years. It assesses a company's ability to promote sustainable economic development and fulfill its social responsibilities, encompassing three non-financial dimensions: environmental, social, and corporate governance. Regulatory authorities, industry associations, and investment institutions worldwide have placed growing emphasis on a company's ESG performance. From the perspective of career concern, this study conducted a multiple regression analysis using data from Chinese A-share companies listed in Shanghai and Shenzhen from 2011 to 2020. It used CEO shareholding and CEO political affiliation as moderating variables to examine the impact of CEO career concerns on the corporate environment, society, and corporate governance performance. Empirical testing of whether CEO career concerns promote or suppress the ESG performance in enterprises. The findings of this study reveal that CEOs with heightened career concerns tend to impede the ESG performance of their respective enterprises. Additionally, CEO shareholding and political affiliations exert a negative moderating influence on the relationship between CEO career concerns and ESG performance. This research significantly extends the investigation into factors influencing ESG performance, offering fresh perspectives that could inform improved CEO oversight, foster corporate transformation, and enhance ESG performance.

ESG practices mitigating geopolitical risks: Implications for sustainable environmental management

As climate change and geopolitical conflicts intensify, understanding how geopolitical risks affect companies prioritizing Environmental, Social, and Governance (ESG) practices is crucial. This study investigates the dynamic relationship between global geopolitical risks and the performance of Environmental, Social, and Governance (ESG) and non-ESG companies, particularly their influence on green markets. Utilizing a robust methodological framework, including the dynamic time-varying parameters vector autoregression (TVP-VAR) model, and causal impact modeling, we analyze daily financial data from 2021 to 2024. The results reveal a substantial negative impact of geopolitical risks on non-ESG companies, contrasting with the resilience of ESG-committed counterparts. This suggests that ESG-committed companies demonstrate better resilience against geopolitical risks, emphasizing the protective role of ESG practices amid uncertainties. Additionally, the inclusion of ESG companies in green markets diminishes the severity of the negative impact of geopolitical risks, underlining the transformative role of ESG commitment in shaping investor behavior towards sustainable investments. Our findings offer insights for policymakers and investors navigating geopolitical risks and ESG performance, with a focus on environmental management, and provide guidance for effective risk mitigation and investment policies to enhance environmental sustainability.

From crisis to responsibility: The role of industry type, leadership style, and regulatory environment in shaping post-COVID-19 CSR initiative

Corporate social responsibility (CSR) is a major concern in modern industries. Chinese industries are growing rapidly and delivering products and services to the market. The Covid-19 pandemic has changed the working style of every type of industry. The objective of this research was to determine the influence of leadership style and industry type on the regulatory environment. This research also aims to determine the impact of the regulatory environment on CSR from the perspective of Chinese industries. Data based on a sample size of 599 was used for data analysis, and Smart PLS 3.0 was used for the results of measurement model assessment and structural model assessment. This study highlighted that industry type and leadership style have a significant positive impact on the regulatory environment and CSR. The framework of this research is based on the identified research gap, and the findings of this study are significant for Chinese policymakers. Furthermore, the research also asserted practical implications that are reliable to advance practices in the regulatory environment and achieve CSR by Chinese firms. This study has several limitations that are required to be significantly addressed for the sustainability of organizations.

Can ESG ratings promote green total factor productivity? Empirical evidence from Chinese listed companies

Against the backdrop of frequent extreme climates and international consensus on green and low-carbon development, Environmental, Social, and Governance (ESG) has progressively drawn increasing attention. Integrating the perspectives of stakeholder theory and signaling theory, this study employed the Malmquist-Luenberger productivity index, fixed-effects regression model, mediating effect model, propensity matching score difference-in-differences model, and a two-stage least squares method. Using the research sample of Chinese A-share listed companies between 2011 and 2021, the mechanisms linking ESG ratings and each component (the individual scores of E, S, and G) with the green innovation and green total factor productivity (GTFP) of enterprises were investigated. This study conducted heterogeneity analysis integrating regional, industry, and enterprise dimensions, fully considered the potential endogeneity issues, and conducted multiple robustness tests by exploring alternative approaches, replacing the measures of indicators, and reducing the research sample. The results demonstrated that higher ESG ratings significantly improved the green innovation and GTFP of enterprises. This improvement was achieved through the stakeholders and signaling mechanisms, and was more prominent in economically underdeveloped regions, patent-intensive industries, and industries with lower environmental risk. In addition, the impact varied among enterprises with different property rights. The findings elucidate the pathways through which soft regulation influences micro-level corporate decision-making, making significant contributions to the literature. Furthermore, this study provides a theoretical foundation and policy reference for constructing a positive feedback loop mechanism for ESG ratings and promoting the green transformation and upgrading of enterprises.

Shifting focus from end-of-pipe treatment to source control: ESG ratings' impact on corporate green innovation

This study actively explores the pivotal role of environment, society, and governance (ESG) ratings in optimizing corporate green innovation activities as a robust response to ongoing ESG investment divestment. It provides empirical support for implementing corporate green transitions, establishing, and refining market-driven green development framework, and attaining "carbon peaking, carbon neutrality" targets. Furthermore, the research represents a groundbreaking effort to assess the influence of ESG ratings on corporate green innovation with a specific focus on pollution disposal. Specifically, examining data from Chinese A-share listed companies spanning 2011 to 2020, this study utilizes various models, including multi-period difference-in-differences (DID), event study, staggered DID, and synthetic DID (SDID). The ensuing analysis reveals that ESG ratings significantly impact the development of corporate green innovation, catalyzing the transformation of green innovation activities from end-of-pipe to source control. Notably, ESG ratings achieve this transformation by mitigating managerial myopia, enhancing the research and development (R&D) staff ratio, and alleviating financial constraints. However, the study also identifies institutional constraints and corporate digitalization as factors leading to heterogeneous effects on green innovation and its direction. These findings not only provide enhanced theoretical support but also offer empirical validation for corporations and governments looking to implement and generalize ESG ratings, facilitating a successful green transition.

From ratings to action: The impact of ESG performance on corporate innovation

This paper aims to investigate the relationship between ESG performance and corporate innovation using a sample of Chinese-listed companies from 2009 to 2021. The findings reveal that ESG performance is positively correlated with both the quantity and quality of corporate innovation. Further, we employed the causal step approach and the Sobel mediation effect test to empirically examine the mechanisms. The results support that ESG performance promotes corporate innovation by reducing agency problems, enhancing information disclosure, and improving internal corporate governance. Heterogeneity analysis indicates that the positive impact of ESG performance on corporate innovation is more pronounced among firms in the central and western regions, as well as those in heavily polluting industries. Notably, we corrected for the truncation-bias in the patent data. This study contributes to the expanding literature on the economic implications of ESG and holds policy implications for promoting the high-quality development of corporate innovation.

ESG ratings, monetary policy uncertainty, and bond issuance premium

Existing studies generally recognize the critical role played by macro monetary policy, of which the uncertainty will increase corporate bond issuance premiums at a micro level. However, relatively little is known about these relationships from the perspective of non-financial information in the corporation. So this study sets out to do further exploration. We use the database to obtain information, including the bond issuance of A-share listed corporations in China from 2015 to 2020. The findings suggest that high environmental, social, and governance (ESG) ratings from listed corporations significantly weaken the positive correlation between monetary policy uncertainty and bond issuance premiums. Specifically, it has a positive information pricing effect on China's primary debt issuance market, as well as a mitigating impact on macro-financial policy risk. We also find, through further mechanistic studies, that ESG ratings are more helpful in undermining the impact of monetary policy uncertainty on bond issuance premiums in the context of higher financial information quality. Our findings are conducive to enriching the research framework of the economic consequences of ESG ratings, meaningfully influencing the growing literature that exposed the mechanism of bond issuance premiums, and further, verifying the interaction of information at different levels (macro vs micro) in asset pricing.

Can energy internet improve corporate ESG performance? -- Evidence from Chinese high energy-consuming companies

Under the challenges of global crises such as climate warming, ESG performance, which represents sustainable development, has received widespread attention at home and abroad. Using the panel data from 2011 to 2020, comprising 726 high energy-consuming companies listed on the Shanghai and Shenzhen A-shares, this paper takes Energy Internet demonstration project in 2016 as a quasi-natural experiment and builds a difference-in-difference model to study its microscopic policy effects. The study found that, firstly, Energy Internet can markedly enhance ESG performance of high energy-consuming companies. Secondly, the mechanism test finds that Energy Internet can facilitate high energy-consuming enterprises to enhance their ESG performance through three mechanisms: increasing government subsidies for enterprises in energy conservation and environmental protection, absorbing talent employment and improving information environment within the enterprises. Finally, the heterogeneity analysis proves that Energy Internet's policy effects are more pronounced in regions with higher financial expenditures on local science undertakings and among state-owned enterprises. China ought to persist in advancing the development of Energy Internet and provide companies with adequate support on finance, talent and technology. Meanwhile, during the construction of Energy Internet, attention should be paid to adapting to local conditions and enterprises.

Sustainability assessment of small hydropower from an ESG perspective: A case study of the Qin-Ba Mountains, China

Small hydropower (SHP) has made significant contributions to economic and social development in rural and remote mountainous regions. However, the adverse ecological-environmental impacts resulting from the SHP sector and challenges in hydropower management have become major areas of concern. From an Environmental, Social, and Governance (ESG) perspective and using three SHP stations (GXD, WZL, and SJB) in the Qin-Ba Mountains as case studies, we constructed a sustainability assessment system comprising 18 indicators across three dimensions. The hesitant fuzzy linguistic term sets (HFLTSs) and cloud models were employed to determine the sustainability level of SHP by characterizing the hesitancy of the evaluator and the uncertainty of the evaluated data. (1) The ecological-environmental protection (E) dimension was assigned the greatest weight, followed by the dimensions of social responsibility contribution (S) and corporate governance management (G). The weights of certain indicators, including the water qualification rate, river morphology maintenance, guaranteed rate of instream flow, comprehensive utilization, and production safety standardization grade were relatively high, conforming to the current context of green development prioritization in which ecological-environmental protection is of the utmost importance. (2) The overall sustainability levels of all three SHP stations were "good", with the E-dimension contributing the most and the G-dimension contributing the least to the sustainability goal. (3) The GXD, WZL, and SJB stations were ranked first, second, and third, respectively, in terms of their sustainability scores. This study provides an innovative perspective for the sustainability assessment of SHP. The evaluation method can be generalized to encompass multi-attribute decision-making problems. The findings of this study can aid in addressing the shortcomings associated with SHP development and promote sustainability within the SHP industry.

Does financial technology matter in the relationship between CSR and banks' financial stability? a quantile regression approach

In today's rapidly evolving global financial landscape, the growing importance of corporate social responsibility (CSR) and Fintech demands immediate attention, making it a vital and urgent area for exploration. This study examines whether Fintech plays a moderating role in the relationship between CSR and the financial stability of banks operating in some countries in the MENAT region from 2010 to 2021. Using simultaneous quantile regression analysis, the results show that Fintech positively moderates the effect of CSR on banks' financial stability at the medium and highest financial stability quantiles. This outcome highlights the need for banking institutions to embrace new technologies and responsible practices to bolster their financial stability in the changing financial landscape. Furthermore, Fintech positively moderates the impact of banks' financial stability on CSR across all quantiles. Thus, Fintech adoption helps banks to be more socially responsible regardless of their stability level. To ensure the robustness of our results, we employ the generalized panel method of moments (GMM) and quantile regression method to test whether the relationship between CSR and banks' financial stability varies with the presence of Fintech. The findings reveal that CSR enhances financial stability in the middle and higher Fintech quantiles. Therefore, Fintech adoption can potentially amplify the benefits derived from CSR activities, leading to greater bank stability. In addition, financial stability increases banks' involvement in socially responsible initiatives across all Fintech levels. This study provides policymakers with meaningful insights into the importance of embracing simultaneously technological innovation and socially responsible practices to enhance financial stability and achieve sustainable development goals.

Do climate policy uncertainty and investor sentiment drive the dynamic spillovers among green finance markets?

Green finance is an essential instrument for improving the environment and addressing climate change. This study investigates the dynamic spillovers among green finance markets using time-varying parameter vector autoregression (TVP-VAR) spillover indices, and further investigates the impact of climate policy uncertainty and investor sentiment on spillovers based on the generalised autoregressive conditional heteroscedasticity mixed data sampling (GARCH-MIDAS) model. The results indicate that: (i) environmental, social and governance (ESG), clean energy and water markets are information transmitters in the green finance system, whereas green building, green transportation, green bond and carbon markets are mainly information receivers; (ii) green stock markets including clean energy, non-energy and ESG markets transmit and receive greater information in the green finance system, while green bond and carbon markets do less; (iii) the green bond market is more interconnected with other green finance markets after the COVID-19 outbreak; (iv) investor sentiment contributes more to the net total directional spillovers of green resource markets (water and clean energy), while climate policy uncertainty contributes more to total spillovers and the net total directional spillovers of other green finance markets. These findings offer invaluable guidance for both policymakers and environmental investors.

Barriers and enablers to implementing environmentally sustainable practices in healthcare: A scoping review and proposed roadmap

This scoping review sought to identify the barriers and enablers to implementing environmentally sustainable practices in healthcare, as well as propose a multi-phased approach to enable such implementation. The three concepts guiding the search were (1) environmental sustainability; (2) healthcare; and (3) barriers or enablers. The PRISMA checklist for scoping reviews was used to guide this search. A total of 16 articles were included and reviewed for data extraction. While most articles focused on healthcare in general, dentistry and surgery were the most recurring clinical areas of focus. Barriers and enablers were related to the individual (e.g. knowledge, skills, and attitude), institutional (e.g. budget, strategy, and readiness), geographical/infrastructural (e.g. infrastructure and public awareness), political (e.g. regulations and incentives), and other (e.g. patient awareness and knowledge). A key enabler identified was having transformational leadership with a clear vision and collaborative approach.

Innovation, advertising, personal selling, and sustainability in the industries massively benefited from major public health emergencies: paradoxical evidence from China

Background

While major public health emergencies have severe socio-economic impacts, they may also present many opportunities for certain industries. For these industries that have benefited significantly (e.g., China' s healthcare industry), the traditional emphasis on improving business performance through increased investment in innovation, marketing and sustainability may face contextual applicability challenges.

Methods

We used the data of healthcare industry in China during Covid-19 and the methods of hierarchical regression, moderating effect test to analyze the impact of innovation, advertising, personal selling, and sustainability on healthcare firms' profitability. Three kinds of robust test including increasing the measurement range of variables, changing the data source and parameter estimation method, and Quantile regression are used.

Results

This paper finds that innovation, advertising, and environmental sustainability have significant negative impacts on profitability, while personal selling, social sustainability, and governance sustainability have significant positive impacts on profitability in the industries massively benefited from major public health emergencies. Besides, social sustainability can significantly moderate the relationship between innovation and profitability.

Conclusion

On one hand, for companies in industries that have benefited greatly from major public health emergencies, a shift in resource allocation from innovation, advertising, and environmental sustainability to personal selling, social sustainability, and governance sustainability may be more conducive to improving their profitability. On the other hand, for public health regulatory authorities, it is necessary to strengthen the supervision of sales representatives of health care enterprises, hospitals, public health organizations, etc., and appropriately subsidize the innovation of enterprises to enhance their innovation motivation.

Can companies get more government subsidies through improving their ESG performance? Empirical evidence from China

Environmental protection and social obligation fulfillment have become hot subjects as the "dual carbon" approach has been developed and deepened. The ESG system is consistent with China's current policies, abandoning the traditional business philosophy of economic supremacy in favor of comprehensively measuring corporate social responsibility and sustainable development capability across three dimensions: environmental (E), social (S), and corporate governance (G), which receive widespread attention from all sectors of society. Based on observational data from A-share listed businesses in Shanghai and Shenzhen from 2011 to 2020, this study empirically evaluates the influence and mechanism of ESG on government subsidies. The research results indicate that enterprises can receive more government subsidies by improving ESG performance. Mechanism analysis found that corporate transparency plays a positive mediating role in the process of ESG affecting government subsidies. Further research on political affiliation and property rights has found that companies without political affiliation are more inclined to receive more government subsidies by improving ESG performance, and the impact of political affiliation and ESG performance on government subsidies is mutually complementary. Enterprises with different property rights have different strengths of motivation to increase government subsidies by improving ESG performance. State owned enterprises (excluding central enterprises) are the strongest, followed by non-state-owned enterprises, and central enterprises are the weakest. Therefore, enterprises should be further encouraged to strengthen ESG construction, improve the quality of ESG information disclosure, improve resource allocation efficiency, and promote high-quality development of enterprises.

The impact of environmental regulation, Environment, Social and Government Performance, and technological innovation on enterprise resilience under a green recovery

In recent years, the world has witnessed an alarming rise in extreme events, posing significant challenges to the survival and growth of enterprises. In response, adopting a green development strategy has emerged as an imperative for businesses to bolster their resilience. It is crucial to recognize that not all enterprises possess the same level of resilience, thereby highlighting the disparities in their ability to withstand adversity. Consequently, scholars have been fervently engaging in discussions and research to identify the most effective paths of green development, enabling enterprises to enhance their resilience and adeptly navigate through crises. This study employs questionnaires to scrutinize the influence of environmental regulation, environment social and government performance, and technological innovation on enterprise resilience by constructing structural equations that encompass both external constraints and internal corporate management. The findings demonstrate that environmental regulations can stimulate technological innovation for the purpose of promoting sustainable development, thereby bolstering enterprise resilience; By incorporating environment social and government principles into their operations, enterprises can instil a culture of environmental consciousness and proactively incentivize innovative solutions, ultimately enhancing their capacity to adapt swiftly and recover from crises; The practice of environmental regulation and the incorporation of environment social and government concepts serve as a catalyst for enterprises to engage in technological innovation, thereby promoting technological advancement and enhancing corporate resilience.

Dynamic spillovers and portfolio implication between green cryptocurrencies and fossil fuels

Are green investments decoupled from the dirty investment such as the fossil fuel markets? We address this issue by extending the literature on environmental, social, and governance (ESG) assets by examining the dynamic relationship between fossil fuels and digital ESG assets proxied by green cryptocurrencies using the TVP-VAR(Time-varying parameter vector auto regression) spillover framework. Furthermore, we analyze the hedging attributes of green cryptocurrencies and fossil fuels in a minimum connectedness framework. The main findings are as follows: First, green cryptocurrencies are the main shock transmitters in all asset systems. Second, the dynamic connectedness between green cryptocurrencies and fossil fuels increased during the COVID-19 and Russia-Ukraine conflicts. Third, green cryptocurrencies have shown considerable hedging effectiveness against the fossil fuels. Our study has important implications for investors, regulators, and policy makers, such as shifting to green cryptocurrencies, regulation of carbon footprint, and promoting eco-friendly assets.

The effect of political turnover on corporate ESG performance: Evidence from China

This paper aims to investigate the effect of political turnover on corporate ESG performance in China. By analyzing data from Chinese A-share-listed companies between 2010 and 2020, we have discovered that changes in the municipal party committee secretary or the mayor of the prefecture-level city where a firm is located have a detrimental effect on corporate ESG performance. Compared with the change of the party committee, the change of mayor has a more pronounced negative impact on ESG performance. The reason behind this negative effect is primarily attributed to policy uncertainty, which leads to a decrease in governmental subsidies and an increase in ineffective under-investment by companies, consequently resulting in decreased corporate ESG performance. Furthermore, we have also observed that the adverse influence of political turnover on corporate ESG performance is relatively mitigated in SOEs, politically connected firms, and tertiary industries. These findings contribute to a deeper understanding of the relationship between political uncertainty and corporate behavior, particularly in emerging markets.

On the fast track: the benefits of ESG performance on the commercial credit financing

Under the sustainability strategy, a company's ability to enhance its financing capacity through improvements in environmental, social, and governance (ESG) performance is crucial for fostering high-quality development. This study empirically examines the impact of corporate ESG performance on commercial credit financing (CCF) using data from China's A-share listed companies between 2009 and 2021. The findings of the panel regression analysis revealed a significant positive correlation between a company's ESG performance and CCF. Further analysis of the influencing mechanisms indicates that a company's ESG performance can increase its likelihood of obtaining CCF by reducing environmental, social, and governance risks. Specifically, we found that ESG performance facilitates access to CCF by promoting green innovation, enhancing social reputation, and mitigating operational risk. This study expands and enriches the theory of informal financing of enterprises while incorporating the more comprehensive assessment criteria for sustainable development.

The Effect of ESG performance on the stock market during the COVID-19 Pandemic - Evidence from Japan

Environmental, social, and governance (ESG) practices can play a crucial role in promoting green recovery by fostering sustainable and responsible economic growth. Based on a novel dataset of Japanese listed companies from January 2016 to December 2021, this study examines the effect of corporate (ESG) performance on the Japanese stock market during the COVID-19 pandemic. We contribute additional evidence to the literature by exploring the unique role of ESG factors that affect stock markets during economic downturns. The results of the study show a positive association between corporate ESG performance and stock returns during the COVID-19 period. Furthermore, we demonstrate that strong ESG performance contributed to enhanced stock market stability and increased market liquidity in Japan during the COVID-19 pandemic. These results provide a rationale for implementing supportive measures and regulations that encourage companies to adopt and disclose robust ESG practices. By doing so, they can contribute to the stability and liquidity of the stock market and fostering sustainable economic growth.

Does the CEOs' hometown identity matter for firms' environmental, social, and governance (ESG) performance?

The environmental, social, and governance (ESG) performance is a vital pursuit of firms' strategy and has caused substantial influences on firms' behavior and outcomes. Therefore, exploring how to facilitate the firms' ESG performance is necessary. This paper examines the role of CEOs' hometown identity in facilitating firm's ESG performance. Based on a sample of Chinese listed firms during 2010-2018, we compare the ESG performance of firms with hometown CEO with that of firms without hometown CEO and find that CEOs' hometown identity is associated with significantly higher ESG performance. The benchmark results still hold after instrumental variable regression, placebo test, propensity score matching, lagging, and altering the measurement of CEOs' hometown identity. Additional analysis shows that CEOs' hometown identity exerts a more prominent positive effect on ESG performance among firms with higher financing constraints and SOEs. Our findings reveal a bright side of CEOs' hometown identity: it facilitates ESG performance. Therefore, this paper's conclusion sheds new light on the bright side of CEOs' hometown identity from the perspective of firms' ESG performance and provides insights into how to improve ESG performance.

How does ESG performance affect stock returns? Empirical evidence from listed companies in China

With the increasing attention to sustainable development, environmental, social, and corporate governance (ESG) investment has become an important vehicle for achieving carbon neutrality worldwide. In this paper, the impact of ESG performance on stock returns and the transmission mechanism are explored. A fixed effect model based on a panel unbalanced data of listed companies in China from 2011 to 2020 is selected for the empirical analysis. The results show that ESG performance of listed companies in China positively impacts stock returns. However, by distinguishing the ownership nature and region to which listed companies belong, this study finds that the relationship between ESG performance and stock returns is particularly significant for non-state-owned companies and those in the eastern region. Further, based on stakeholder theory, financial performance and corporate innovation ability are embedded into the relationship between ESG performance and stock returns. Both financial performance and corporate innovation ability play partial mediating roles in the correlation between ESG performance and stock returns. In addition, the relationship between ESG performance and corporate innovation ability is non-linear. This paper provides insight for emerging markets into cultivating the value investment concept of investors and improving the ESG information disclosure system.

Assessment of sustainable green financial environment: the underlying structure of monetary seismic aftershocks of the COVID-19 pandemic

The study aims to assess a sustainable green financial environment by exploring the underlying structure of monetary seismic aftershocks of the COVID-19 pandemic. This study is qualitative and uses a review of literature, primary data collection methods, and qualitative analysis techniques as the study's overall design. The data is collected by one-to-one interview using a matrix style questionnaire from a panel of experts based on the purposive sampling technique. Interpretive structural modeling (ISM) combined with Matrices' Impacts Cruise's Multiplication Appliquée a UN Classement (MICMAC) is used for assessment, modeling, and analysis of data. The monetary aftershocks, namely, "more cash in hand required," "decreased travel costs," "shift to more certain or fixed revenue streams," "lower rent costs," "more zealous monitoring of cash collection cycle," and "decreased entertainment costs," occupy level I (top of the model being least critical shocks), and "tedious regulations" occupy level VIII (bottom of the model being the most vital). Other aftershocks form the middle of the model being moderate critical. Analysis of MICMAC shows that monetary seismic aftershocks high fees for assistance regarding SOPs, tedious regulations, and more downtime due to pandemic alerts are independent. This study addresses the core issue from within the aftermath of the COVID-19 pandemic. It provides new important information regarding the structure of a sustainable green financial environment that is useful for economists, financial analysts, commercial and central bankers, accountants and finance managers from the organization's public/and private sectors, local and international community, and researchers of the domain. It provides an informative structural model and classification of critical aftershocks. There are specific data/methodological/resource-related limitations of the study. The study's data are collected from a focus group; the study's methodology is qualitative and indicates relations among variables that do not quantify the associations. The study is a typical initiative of academic researchers with limited financial/physical resources; therefore, the generalizability of the study results is accordingly limited. The study is based on original, essential data and innovatively and creatively approaches the problem. It provides a unique model of an unprecedented phenomenon for reverberating the sustainable green financial environment.

How reactive is investment in US green bonds and ESG-eligible stocks in times of crisis? Exploring the COVID-19 crisis

This study examines how green bonds and environmental, social and governance (ESG) stock market returns have reacted to the COVID-19 crisis in the US. Unlike the Standard and Poor's (S&P) 500 index, the response of green bonds and ESG markets to pandemic progress is nonlinear: A low (large) level of confirmed new cases of COVID-19 has a positive (negative) impact. Furthermore, the implemented containment policies (stringency measures and vaccination campaigns) are positively valued, but their simultaneous use is perceived by investors as a bad signal. Overall, our findings question the resilience of investments in green bonds and ESG markets.

Green management, access to credit, and firms' vulnerability to the COVID-19 crisis

This paper investigates the consequences of the COVID-19 crisis on firms' performance and financial vulnerability. Exploiting longitudinal firm-level data from the World Bank's "Enterprise Surveys follow-up on COVID-19" for 20 European countries, we assess whether green management quality and pre-pandemic credit access difficulties affect firms' ability to withstand the negative impact of the pandemic. Our results indicate that green firms are more resilient to the pandemic shock. In particular, the likelihood of pandemic-induced drops in sales and liquidity significantly decreases as the quality of green management improves. Conversely, prior financing constraints strongly exacerbate the pandemic's impact on firms' performance and amplify liquidity stress and financing problems. Credit-constrained enterprises are not only more likely to experience liquidity shortages and repayment problems, but they also face higher difficulties in accessing bank financing. The COVID-19 crisis has also hampered the beneficial role that green management exerted on access to credit in the pre-pandemic period. During the pandemic, firms with sound environmental management practices do not benefit from improved access to finance and have a lower demand for credit, possibly suggesting a slowdown in their green investment activities.

Supplementary information

The online version contains supplementary material available at 10.1007/s11187-023-00759-1.

Can capital markets identify heterogeneous environmental investment strategies of firms? Evidence from China

Using a 2005-2020 sample of A-share listed companies in China's heavily polluting industries, this paper divides environmental investment strategies into "light green," "medium green," and "deep green" dimensions and constructs a panel threshold model to investigate the impact of different environmental strategies on China's stock market. The study found that environmental investment intensity has a double threshold effect on stock returns, "medium green" behavior helps improve stock returns, and "light green" and "deep green" behaviors are not conducive to stock returns. Institutional investors are more accurate than ordinary investors in identifying heterogeneous environmental strategies. The mechanism test shows that different environmental strategies affect stock returns through internal "value enhancement" and external "government subsidy" mechanisms. Moreover, "greenwashing" benefits for companies are short-lived; the market eventually imposes punitive pricing. These findings provide a reference for enterprise- and market-oriented green development systems.

Official Turnover and Corporate ESG Practices: Evidence from China

In recent years, environmental, social, and governance (ESG) have been extensive concerned. However, few studies have focused on the impact of situational factors on corporate ESG practice decisions. Based on this, using 9428 observations of Chinese A-share listed companies from 2009 to 2019, this paper attempts to explore the impact of local official turnover on corporate ESG practices, and analyzes the boundary effects of this impact from three aspects: region, industry, and corporate. Our results suggest that (1) official turnover can lead to changes in economic policies and redistribution of political resources, which can stimulate companies' "risk aversion motivation" and "development motivation" and thus promote their ESG practices; (2) this effect is more significant in the high degree of government intervention, the high level of industry competition and private corporates. (3) Further test finds that only when the official turnover abnormally and the regional economic development well, official turnover can significantly contribute to corporate ESG. This paper enriches the relevant research on the decision-making scenarios of corporate ESG practices from the macro-institutional perspective.

Tax incentives and environmental, social, and governance performance: empirical evidence from China

The improvement of corporate ESG performance is of great significance to the high quality and sustainable development of the economy. Governments in various countries have introduced many tax incentives to motivate companies to actively fulfill their ESG responsibilities. However, no research has been conducted in academia to study the relationship between tax incentives and ESG performance. This study aims to fill the gap in this area and investigate whether tax incentives can effectively motivate the improvement of corporate ESG performance. Using a two-way fixed effects model, this paper empirically investigates the relationship between tax incentives and corporate ESG performance and the paths of action, using Shanghai and Shenzhen A-share listed companies from 2011 to 2020 as the research sample, and finds that (1) tax incentives significantly contribute to the enhancement of corporate ESG performance; (2) financing constraints play a partly mediating role in the relationship between tax incentives and corporate ESG performance; (3) a favorable business environment can enhance the promotional effect of tax incentives on corporate ESG performance; (4) the incentive effect of tax incentives on corporate ESG performance is more significant among state-owned enterprises, enterprises in the eastern region, larger enterprises, enterprises with more concentrated equity, and enterprises with better quality of internal control. The research in this paper enriches the research perspective on the factors influencing corporate ESG performance and provides strong empirical evidence to support the implementation and improvement of ESG-related tax incentives, helping the implementation of the concept of sustainable development and high-quality economic development.

ESG performance, capital financing decisions, and audit quality: empirical evidence from Chinese state-owned enterprises

We study the nexus between environmental, social, and governance (ESG) performance and corporate capital financing decisions. Further, we also analyze the effect of audit quality and type of ownership (state-owned enterprises (SOEs) vs non-state-owned enterprises (non-SOEs), local vs central SOEs in this relationship. By applying panel regression (fixed effects) on 6295 firm-year observations of Chinese A-listed enterprises data for 2010-2019, we conclude that firms' ESG information is crucial to their financing decisions. In particular, firms with superior ESG performance have lower debt financing. The findings suggest that enterprises with strong ESG performance have easy access to equity funding via stock markets. Further, this relationship is more pronounced in SOE compared to non-SOEs and in central SOEs compared to local SOEs. These results demonstrate that the market may promote desired social outcomes by rewarding ESG performance; however, we find no significant effect of audit quality in this relationship. Findings are robust to different sensitivity tests, including an alternative estimation, sysGMM regression to address endogeneity issues, and lagged regressions to address reverse causality.

ESG performance in the time of COVID-19 pandemic: cross-country evidence

The purpose of this paper is to compare the performance of environmental, social, and governance (ESG) in developing and developed countries prior to and during the COVID-19 pandemic; the study also seeks to reveal the impact of the COVID-19 on the performance of ESG during the pandemic period. Based on a large international panel dataset of 12,325 company-year observations covering 2016-2021, panel regression analysis examined the study hypotheses and achieved the study objectives. The findings indicate that companies have taken precautions against the threats of the COVID-19 pandemic by ensuring compliance with ESG performance to prove their ethical behavior during a crisis. Our findings call into question the notion that companies in developed countries outperform companies in developing countries in terms of ESG performance. As a result, companies in emerging markets outperform companies in developed markets regarding environmental performance, while developed markets focus on social performance. Besides, the ESG performance is positively and significantly affected by the COVID-19, which indicates that during crises, it is important for companies to comply with ethical behavior and the most acceptable in societies. Also, the pandemic has a positive impact on both environmental and social performance, while it has a negative impact on governance performance alone. A considerable body of the literature has addressed the effect of the COVID-19 pandemic on various aspects of a company's financial and non-financial practices. However, limited effort was given to ESG performance. The current study fills this gap by evaluating the direct effect of the COVID-19 crisis on the ESG performance in developing and developed countries. It also provides insight into the ESG performance and corporate behavior and obligations.

Mapping the environmental, social and governance literature: a bibliometric and content analysis

Purpose

This study aimed to quantify and map academic literature of ESG from a bibliometric perspective and to provide a comprehensive review of the recent literature published in the high-rated journal articles.

Design/methodology/approach

The study analyzed 867 and 388 documents from Scopus and Web of Science (WoS) data respectively using bibliometric analysis. Biblioshiny and VOSviewer software was used for performance analysis and science mapping respectively. Further, manual content analysis of the 190 research articles published in the last five years was conducted.

Findings

The results demonstrate that ESG is an emerging domain in the field of sustainable finance as the number of publications and total citations are showing an upward trend. The top two journals in terms of productivity are the Journal of Sustainable Finance and Investment and Business Strategy and the Environment. The highest number of publications are from the United States and George Serafeim is the most influential author in the ESG domain. Further, the result of cluster analysis of bibliographic coupling reveals four intellectual themes, (1) ESG investing; (2) ESG disclosures and Integrated Reporting; (3) ESG performance and firm value and (4) Corporate Governance and ESG performance. The content analysis of the 190 high-quality journal articles presents the current 11 areas of research in ESG. The impact of ESG on firm value and ESG investment are the prominent themes, and the effect of ESG on the cost of capital and ESG audit and assurance are the emerging themes in this domain.

Research limitations/implications

The keyword search is solely focusing on the theme of the study. Further, other keywords such as Corporate Social Responsibility and Corporate sustainability taken along with ESG may provide distinct results.

Practical implications

The study advances the understanding of the ESG domain by developing new possibilities to discover key research areas.

Originality/value

The present work provides a comprehensive and detailed bibliometric and content analysis of ESG literature. This study delineates the thorough literature review of journal articles published in the recent five years in high-rated journals.

Co-finance for energy project under the Belt and Road Initiative: an application of evidential reasoning-group decision-making method

Cooperation among consortium countries for energy projects under the Belt and Road Initiative (BRI) faces various uncertainties, and urges institutional investors to choose the co-finance mode to diversify the investment risk of energy projects. Recently, responsible investing in energy finance has been raised as a path to make the BRI greener. However, few studies focused on the issue on how to make the optimal decision in the process of collaboration. Therefore, this study constructed the financial-environment, social, and governance (F-ESG) evaluation indicator system from the perspective of responsible investors and proposed an integrated evidential reasoning group decision-making (ER-GDM) model. Then, programmed algorithms were designed to analyze and visualize the selection of the desired alternative. Finally, we applied the evaluation framework to the co-finance for four energy projects under the BRI. The results showed that after multiple rounds of discussion and negotiation (DAN), the consensus level reached 95.1%. It depicts that the optimized collective opinion has been obtained despite heterogeneous preferences. The analysis framework and proposed model in this study not only help international investors to co-finance energy project efficiently but also provide a solution for policy-makers to realize sustainable and high-quality cooperation in investment and financing under the BRI.

Did Corporate Social Responsibility Vaccinate Corporations Against COVID-19?

Using an international setting consisting of 5410 corporations domiciled in 24 countries, we test the insurance-like effect of corporate social responsibility (CSR) performance in the era of the pandemic and confirm that CSR performance increases socially responsible companies' resilience against the adverse effects of the crisis. Comparing stakeholders' responses to CSR activities during the pandemic and normal periods, we observe that the link between CSR performance and firm value is stronger during the crisis period. We also realize that the social aspect of CSR performance is the main driver for the mentioned effects. Finally, comparing the resilience of highly committed socially responsible companies with those with moderate and very low CSR ratings, we observe that best-in-class companies enjoy the greatest buffering effects, implying that the insurance-like effect of CSR performance is non-linear against systematic crises. Findings are robust to ceremonial CSR activities, extreme values of market-based instruments, endogeneity concern, etc.

Environmental, social, and governance (ESG) and market efficiency of China's commercial banks under market competition

As the leading financial institutions in China, it is crucial for commercial banks to pay attention to environmental protection (E), social responsibility (S), and corporate governance (G) in order to enhance operational efficiency and to advance the high-quality development of the country's social economy. This research explores the market share of banks as exogenous variables in the profit stage and the market and sustainability stage to investigate the efficiency of 20 listed banks in China over 2016-2020 and innovatively incorporates indicators such as green credit, social giving, executive compensation, and ESG score into the meta-dynamic two-stage SBM under the exogenous variable DEA model. The results demonstrate the following. (1) By integrating market share as an exogenous variable in the model, the efficiency estimate is more precise. (2) In overall, UCBs are the most efficient type of banks, JSCBs are the second, SOCBs are the least efficient. All three types of banks are more efficient in profit stage versus the market and sustainability stage, JSCBs perform best in the profit stage, where SOCBs perform best in the market and sustainability stage. The three different bank types' TGR performance is comparable to their efficiency value performance. (3) SOCBs lead in ESG investment and have the best ESG performance due to their distinct state-owned background. With their ongoing dedication to profit maximization and disregard for social responsibility and sustainable development, JSCBs have the worst ESG performance. (4) Policy recommendations are made based on the study's findings for commercial banks, stakeholders, and regulators to support ESG investment and to bring about long-term sustainable development. Finally, as ESG develops in China, future research can consider longer time scales and larger perspectives to investigate the sustainability efficiency of commercial banks themselves, as well as their role in the local economy and industrial transformation.

Corporate ESG performance as good insurance in times of crisis: lessons from US stock market during COVID-19 pandemic

Purpose

The COVID-19 outbreak and its confinement resulted in an unexpected stock market crash, hence the interest in environmental, social and governance (hereafter, ESG) policies. This paper aims to examine the association between ESG performance and stock market volatility before and after the COVID-19 pandemic.

Design/methodology/approach

This paper examined 500 US companies listed in the S&P 500. The window period volatility refers to March 18, 2020, when the US President signed into law the Families First Coronavirus Response Act. Here, the Thomson Reuters database was used to collect ESG data and daily market information.

Findings

The findings suggest that companies with high ESG performance have lower stock price volatility than companies with poor ESG performance. In other words, strong ESG performance reduces stock price volatility resulting from the COVID-19 shock and promotes resilience and stock price stability.

Practical implications

This research contributes to current debates on emerging pandemics and unexpected risks and highlights the need to invest more in improving corporate sustainability.

Originality/value

The results have substantial implications for managers and investors, as it highlights the relevance of customer and investor loyalty to the durability of ESG stocks.

Pricing uncertainty in the Brazilian stock market: do size and sustainability matter?

This article analyzes the pricing of innovations in the Brazilian stock market during periods of economic uncertainty. Cross-sectional data were analyzed using the generalized method of moments technique, and our findings indicate that during such periods, innovations negatively impact excess stock returns. Furthermore, our findings suggest that innovations during economic uncertainty improve the pricing of financial assets, making them a significant risk factor. These results are corroborated by those for the Corporate Sustainability Index and the Small Caps Index in the robustness analysis.

Did ESG Save the Day? Evidence From India During the COVID-19 Crisis

Investors have shown increasing interest in Socially Responsible Investments (SRI) in the past few years, especially during the financial crisis caused due to the outbreak of the COVID-19 pandemic. SRI are evaluated on the basis of Environmental, Social and Governance (ESG) criteria. ESG information allows investors to assess the risks associated with a particular firm and how the firm manages or intends to manage future risks. Amidst the increasing investor interest in ESG products, we attempt to study the value addition of ESG performance to investors during crisis period. Using a sample of ESG rated firms listed on the Bombay Stock Exchange (BSE), we examine the investment performance, trading volumes and return volatility of ESG stocks in an emerging market like India during the COVID-19 crisis. The results of our event study conducted around the important events that have occurred in India during the COVID-19 pandemic provide evidence that investors can use ESG information as a signal of future stock performance. Most importantly, ESG performance provides downside protection during crisis times. Our results show that ESG performance does not prove to be detrimental to investment performance during normal times. Also, ESG performance was found to reduce stock return volatility during the COVID-19 pandemic. Overall, our study attempts to establish an investment case for ESG stocks in emerging markets in India by providing support to the good management hypothesis.

Development clustering system IDX company with k-means algorithm and DBSCAN based on fundamental indicator and ESG

The global pandemic covid-19 offer buying opportunity to buy business with discounted price. This phenomenon attracts new type of investor around the world. This novice investor may aware that there is indices that is followed as benchmark. This benchmark was used as guidance, however, fact shown that some of this indices constituent fails to adapt and survive during global pandemic. Research indicates that formulation on inclusion and exclusion an index may biased. This novice investor may also be aware of so called blue chips company. However, yesterday winner may become tomorrow losers. This biased classification is done by human. This experiment intentionally to counter this practice, by using cutting edge machine learning to cluster IDX company using K-Means and DBSCAN algorithm. This experiment dataset is using KOMPAS100 fundamental indicator and it's ESG attributes. Experiment result suggesting there is five cluster in terms of fundamental and ESG in KOMPAS100.

The impact of digital transformation on corporate total factor productivity

Introduction

Corporates need to break through the dilemma of system and efficiency with the help of digital transformation in the digital economy era. This paper aims to examine the influence of digital transformation on corporate total factor productivity by investigating whether and how corporate technical cooperation and ESG performance mediate and moderate the relationship between them.

Methods

This study choose Chinese A-share listed manufacturing firms from 2016-2020 as the research sample and use the FGLS regression model to test the proposed hypotheses.

Results

Results show that digital transformation has a positive effect on corporate total factor productivity, and this positive impact is more pronounced when corporates have higher ESG performance. Corporate technical cooperation plays a mediating role between digital transformation and total factor productivity. ESG performance also plays a positive moderating role in the relationship between digital transformation and corporate technical cooperation.

Discussion

Our results contribute to the literature on digital transformation and corporate total factor productivity at the micro-corporate level. Further, our findings offer insights to decision-makers and regulatory bodies regarding the current practices of digital transformation and its potential economic impact.

Are ESG-committed hotels financially resilient to the COVID-19 pandemic? An autoregressive jump intensity trend model

Given that the United Nations views environmental, social, and governance (ESG) as a practical framework for anchoring responsible corporate behavior to achieve its sustainable development goals, this study constructs an autoregressive jump intensity trend (ARJI-trend) model to determine if ESG can improve future resilience and create crisis-resilient value for chained-brand hotel corporations from the effects of COVID-19. The findings indicate that the ARJI-trend model indeed captures both the permanent and transitory components of the hotel corporation's ESG performance related to stock return dynamics. When ESG rating is taken into account, the following conclusions emerge: 1) the transitory component of time-varying return variance decreases but the permanent component does not; 2) the hotel corporation portfolios with a lower transitory component experiences a higher return, implying that the hotel corporations with a higher ESG rating appear to be more defensiveness; and 3) with proper asset reallocation, a portfolio centered on strong ESG-conscious hotel corporations is a safe-haven asset during market turmoil.

Green Financial Reform and Corporate ESG Performance in China: Empirical Evidence from the Green Financial Reform and Innovation Pilot Zone

Does the establishment of pilot zones for green finance reform and innovations in 2017 have an impact on the Environment, Social and Governance (ESG) scores of enterprises? This paper selects data from Chinese A-share listed companies from 2014-2020 and uses the differences-in-differences (DID) model to analyze the impact of green financial reform on the ESG scores of enterprises. The study shows that the establishment of the Green Financial Reform and Innovation Pilot Zone (GFPZ) policy helps enterprises to obtain higher ESG scores through environmental, social and governance mechanisms. When ESG is measured using environmental, social and governance data, our results suggest that the contribution of green finance reforms to ESG scores is primarily driven by social responsibility scores. The adjustment effect analysis shows that for large enterprises in the GFPZ, the above effects have stronger influence, but there is no significant difference between heavily polluting and non-heavily polluting firms in the GFPZ. Expansive analysis shows that the improvement in ESG scores of enterprises in the GFPZ not only contributes to the green performance of enterprises, but also to their financial performance.

Is ESG the key to unlock debt financing during the COVID-19 pandemic? International evidence

In this article, we examine whether stakeholder engagement impacts firms' ability to raise debt during the COVID-19 pandemic. Using firm-level data from 51 countries, we find that firms with greater stakeholder engagement obtain higher debt financing during the COVID-19 pandemic. This effect is more pronounced for riskier firms, highlighting the importance of maintaining relationships with stakeholders. Moreover, we find that stakeholder engagement facilitates higher debt financing for less asset-intensive firms and firms in emerging economies. Our empirical analysis reinforces the role of firms' stakeholder engagement in mitigating the adverse impact of economic shocks.

Has the risk of socially responsible investments (SRI) companies stocks changed in the COVID-19 period? International evidence

In this study, we investigate changes in risk of socially responsible investments (SRI) companies in the periods before and during the COVID-19 pandemic relying on a broad dataset covering SRI indices from 35 markets analyzed between 2016 and 2021. Our results provide evidence that the systematic risk of the SRI firms, measured by the beta coefficient, increased in most countries around the world during the COVID-19 period. However, some markets in our sample show remarkable resilience and stability in terms of the changes in their risk patterns. In particular, the systematic risk of SRI companies from the markets in East Asia decreased during the COVID-19 pandemic, which contrasts with substantial increases in the systematic risk of the SRI firms from the SRI indices in all other regions around the world.