Abstract
This paper uses Chinese small and medium enterprises (SMEs) as a research sample to explore the relationship between environment, social responsibility, governance (ESG) performance and firm value creation and to test the moderating effect of government subsidies. In addition, we classify government subsidies into innovation, social responsibility, and development subsidies using a Biterm Topic Model (BTM) to explore the heterogeneous moderating effects. The results show an inverted U-shaped relationship between ESG performance and value creation in Chinese SMEs. Government subsidies have a significant moderating effect on the inverted U-shaped curve of ESG performance and value creation, and the moderating effect of different government subsidies also varies. An increase in social responsibility subsidies makes the curve inflection point shift to the left, an increase in development subsidies makes the inflection point shift to the right and the curve steeper, and innovation subsidies have no moderating effect.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
