Work

Can Sci-Tech Finance Policy Boost Corporate ESG Performance? Evidence from the Pilot Experiment of Promoting the Integration of Technology and Finance in China

Year: 2025

Type: article

Abstract: Based on the quasi-natural experiment of “the pilot policy of combining science and technology with finance” (Sci-Tech Finance pilot policy) carried out in China in recent years, this paper constructs a multi-stage difference-in-differences model to explore its impact on corporate ESG performance and the influence mechanisms. The main research findings of this paper are as follows: (1) The Sci-Tech Finance pilot policy significantly enhances corporate ESG performance, a finding that remains consistent after conducting parallel trends testing, propensity score matching, and placebo tests. (2) The policy promotes the corporate ESG performance through three intermediary channels, namely alleviating financial constraints, improving total factor productivity, and enhancing green technology innovation. Notably, the first two intermediary channels exhibit the most prominent effects. (3) The impact of the pilot policy on the corporate ESG performance exhibits heterogeneity at both the regional and corporate levels; it demonstrates a more pronounced impact on corporates located in the Eastern Region, within high digital economic zones, and among high-tech, capital-intensive, heavily polluting, and state-owned corporates. (4) The policy has apparent spatial spillover effects on corporate ESG performance, accounting for about 8% of the direct effect in the pilot areas. This study enriches the literature on the impacts of Sci-Tech Finance on corporate behaviors, providing insights for government regulatory authorities to leverage Sci-Tech Finance policies to promote corporate ESG performance and sustainable development.

Source: Sustainability

DOI: 10.3390/su17062332

Authors: Wenjuan Su, Jiyu Yu, Lingyun Zhao

Institutions: Hubei University Of Economics, Center of Hubei Cooperative Innovation for Emissions Trading System

Language: English

Topic: Sustainable Finance and Green Bonds

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Industry, innovation and infrastructure

Open Access status: gold

Estimated APC paid: $2,896