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Does ESG performance have an impact on firm value? Evidence from the Chinese textile and garment industry

Year: 2025

Type: article

Abstract: The effect of ESG performance has recently become a challenge, attracting controversy. This study investigates the relationship between ESG performance and firm value in textile and garment companies; moreover, it examines the role of green innovation in the relationship between ESG performance and firm value. We used 673 annual samples of Chinese Shanghai and Shenzhen A-share textile and garment listed companies from 2012 to 2022. Correlation and panel regression analyses were carried out to evaluate possible links between ESG performance as determined by the ESG rating data published by the Sino-Securities Index Information Service (Shanghai) Co., Ltd and market-based measures of firm value. Our main finding reveals that the ESG performance has a significant positive relationship with textile and garment company value; ESG performance can promote firm value by increasing green innovation, and green innovation has a partial intermediary role between ESG performance and firm value. We conducted multiple sensitivity analyses, and our findings are robust, which can provide useful recommendations for firms, investors, and policymakers.

Source: Industria Textila

DOI: 10.35530/it.076.02.2023126

Authors: YIBING SHAO, MENGLIN ZHENG, XIN XU, XIAOFEN JI

Institution: Zhejiang Sci-Tech University

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Decent work and economic growth

Open Access status: diamond

Funder: Zhejiang Sci-Tech University