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Can ESG rating help shape enterprises' new-quality productivity? Evidence from China

Year: 2025

Type: article

Abstract: As an advanced form of productive forces, new-quality productivity serves as a crucial engine for promoting high-quality development. Against the background of the exogenous shock caused by SynTao Green's first public release of the ESG rating of listed companies, this paper investigates the impact of ESG ratings on the new-quality productivity of Chinese companies. We employ the multiple-period difference-in-differences (DID) model in this study. The main findings are as follows: ESG ratings can significantly promote the new-quality productivity of enterprises. This conclusion remains valid after a series of robustness tests. The mechanism tests indicate that ESG rating new-quality productivity of enterprises by enhancing corporate innovation capacities and green productivity. Furthermore, the effect of ESG rating on new-quality productivity varies in accordance with different characteristics of enterprises, such as their lifecycle, new-quality productivity performance, degree of digital transformation, firm size, and market competition levels. In conclusion, we propose several policy implications.

Source: International Review of Economics & Finance

DOI: 10.1016/j.iref.2025.104654

Authors: Yi Guo, Jinsong Hu, Yue Dou, Shuyi Lin

Institution: Beijing Technology and Business University

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

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

Open Access status: gold

Estimated APC paid: $1,930