The Impact of ESG Performance on Corporate Financial Performance: Evidence from Listed Manufacturing Companies in Jiangsu Province
Main Article Content
Keywords
ESG performance, corporate financial performance, innovation capability, debt financing costs
Abstract
This study examines the impact of ESG performance on corporate financial outcomes using listed manufacturing firms in Jiangsu Province from 2013--2023 as the sample. Drawing on Huazheng ESG ratings and financial data, a two-way fixed effects model is employed to explore transmission mechanisms through innovation capability and debt financing costs. Heterogeneity analysis is conducted on the basis of ownership structure and regional differences within Jiangsu Province. The innovation of this study lies in its focus on provincial-level manufacturing sectors and its comprehensive examination of the overall effects across all three ESG dimensions. The results indicate that strong ESG performance enhances corporate performance, with more pronounced effects observed in nonstate-owned enterprises and in northern and central Jiangsu. These findings provide empirical support for enterprises and regulators to advance differentiated ESG practices.
References
- Chen, J., (2019). A Study on the Correlation Between ESG and Corporate Financial Performance. Master’s Thesis, University of International Business and Economics.
- Du, S. and Wang, Z. J., (2021). Corporate social responsibility disclosure, investment efficiency, and corporate innovation. Journal of Guizhou University of Finance and Economics, no. 1, pp. 52-62.
- Friedman, M., (2007). The social responsibility of business is to increase its profits. In: Corporate ethics and corporate governance. Springer, pp. 173-178.
- Jia, L. L., (2025). The Impact of ESG Performance on Financial Performance in Shandong Manufacturing Enterprises. Old Brand Marketing, no. 11, pp. 97-99.
- Li, T., (2023). The impact of ESG on commercial banks’ financial performance. Modern Business, no. 19, pp. 181-184.
- Liu, X., (2024). Research on the impact and pathways of corporate ESG on business performance under the “Dual Carbon” context. Accounting and Finance Bulletin, no. 18, pp. 64-69.
- Peng, M. r., Chen, J. and Yin, J. m., (2023). ESG performance, innovation capability, and corporate performance. Accounting Friend, no. 7, pp. 11-17.
- Shan, M. m., Lin, Y. t. and Cheng, F., (2019). A study on the nonlinear relationship between corporate social responsibility and financial performance. Accounting Friend, no. 11, pp. 45-51.
- Tao, X. L., Chen, Y., Li, D. and Feng, X. Y., (2025). The relationship among corporate ESG performance, green technology innovation and corporate performance. Science & Technology Progress and Polic, vol. 42, no. 15, pp. 87-97.
- Wang, L. L., Lian, Y. H. and Dong, J., (2022). Research on the mechanism of ESG performance’s impact on corporate value. Securities Market Herald, no. 5, pp. 23-34.
- Yang, D. N. and Zhou, C. H., (2004). Dynamic relationship model of corporate environmental performance and economic performance. China Industrial Economics, no. 4, pp. 43-50.
- Yang, R. b., Deng, C. t. and Hou, X. z., (2023). The impact of ESG performance on corporate financial performance. Technology and Economy, vol. 42, no. 8, pp. 124-134.
- Yuan, Y. H. and Xiong, X. H., (2021). The relationship between ESG performance and corporate performance of listed companies: Based on the moderating role of media attention. Jiangxi Social Sciences, vol. 41, no. 10, pp. 68-77.
- Zhang, Q., Mei, Y. l. and Wang, K., (2023). Does ESG performance affect corporate financial risk? Empirical evidence from a-share listed companies. Accounting Journal, no. 21, pp. 105-114.
Article Sidebar
This work is licensed under a Creative Commons Attribution 4.0 International License.