Abstract

There is little research on the intrinsic mechanisms between environmental, social, and governance (ESG) performance and green technology innovation among firms in developing countries. Utilizing a dataset comprising Chinese A-share listed companies in Shanghai and Shenzhen for 2015–2020, this study employs a two-way fixed-effects modeling approach, accounting for industry- and time-specific effects. The results demonstrate an affirmative relationship between firms’ ESG performance and green technology innovation, which is reinforced by state-owned enterprises and firms with dual CEO positions. This study offers a scholarly foundation for the broader transition toward a greener economy and society in China.

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