Does Corporate ESG Performance Improve Export Intensity? Evidence from Chinese Listed Firms

Abstract

Although there have been numerous studies on environment, society, and governance (ESG), its impact on firm export has not often been examined. In this paper, we use the panel data of Chinese listed firms and a newly constructed ESG index to estimate the impact of ESG on firm export intensity. We further test the likely channels through which ESG can affect firm export intensity, including the innovation channel and financing constraints channel. The findings show that corporate ESG performance imposes a significantly positive impact on firm export intensity. The channel analysis shows that ESG influences export intensity through innovation and financing constraints. Lastly, heterogeneity analysis shows that the boosting effect of ESG on firms’ export intensity mainly originates from large firms and state-owned enterprises (SOEs) in the sample. This paper suggests that policymakers should pay attention to ESG, improve ESG information disclosure and give financial support to small non-SOEs.