The Impact of ESG Performance on Innovation Research

Abstract

High-quality economic and social development has become the main theme of the current era, and the promotion of corporate ESG development is of great significance to the implementation of the new development concept of "innovation, harmony, greenness, openness and sharing". This paper takes 3,784 listed companies in Shanghai and Shenzhen A-shares from 2011 to 2021 as research samples, and conducts research on ESG performance and corporate innovation with the help of Stata17.0 software, based on which it further examines the roles of financing constraints, the proportion of QFII, and the characteristics of senior executives in this influence path. The study finds that: (1) ESG performance has a significant role in promoting corporate innovation; (2) ESG performance can alleviate financing constraints and increase the QFII ratio, thus enhancing corporate innovation; (3) executives with academic background and overseas study background can positively regulate the relationship between ESG performance and corporate innovation. (4) Firms in the eastern and central regions can promote R&D investment by improving ESG performance, and firms in the central region can promote corporate innovation performance more significantly by improving ESG performance. (5) Firms in the national region are able to promote innovation output by improving ESG performance, but state-owned enterprises are unable to improve R&D investment through ESG performance. The findings provide some empirical basis for further promoting corporate strategy development and improving corporate governance mechanisms.