Work

Does New Infrastructure Influence Corporate ESG Performance?

Year: 2025

Type: article

Abstract: Based on the data of China's A-share listed companies from 2009 to 2021, this paper examines the relationship between new infrastructure construction and corporate ESG performance and its mechanism of action using a multi-period double-difference model and a mediation effect model based on a quasi-natural experiment with the pilot policy of "smart city". The results of the study show that new infrastructure construction has a significant contribution to corporate ESG performance, and the conclusion still holds after the robustness tests such as multi-period parallel trend test, PSM-DID, and placebo test. Heterogeneity analysis reveals that new infrastructure construction has a stronger enhancement effect on the ESG performance of state-owned enterprises, large enterprises and enterprises in light pollution industries. The results of the impact mechanism test show that new infrastructure construction promotes the ESG performance of enterprises through three channels, namely, facilitating the digital transformation of enterprises, increasing the R&D investment of enterprises, and improving the government's concern for the environment. The findings provide countermeasure suggestions for optimising new infrastructure construction and promoting enterprises' green transformation.

Source: Frontiers in Sustainable Development

DOI: 10.54691/2x88mf57

Author: Zheng Li

Institution: Guangxi Minzu 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, Sustainable cities and communities, Climate action

Open Access status: diamond

Funders: Guangxi University for Nationalities, Guangxi University, Division of Graduate Education