The link between green innovations, corporate performance, ESG activities, and sharing economy.

Abstract

In current years (environment, social, and governance), ESG activities in various countries have been focus more attention their stakeholders by enterprises. The world largest developing country China. The Chinese registered Enterprises ESG performance helps to apprehend the deficiencies of their sustainable ability and development for boost the organizations value. Furthermore, enterprises must balance the allocation of resources between green innovation investment and ESG activities in the future as a result of the interaction effect between these two factors. This research examines the effects of environmental, social, and governance issues on financial and non-financial performance at registered Chinese manufacturing firms since 2009 to 2019. Green innovation is also tested as a moderating factor. Results show that environment, common, and governance performance has negative influence on the firm financial performance. On the other hand, its negative effects on financial performance will be enhanced. The environmental activities have negatively affected financial performance but green innovation has positively regulated them. Non-financial performance is positively impacted by the ESG performance. The ESG general performance and the environmental performance have positive influence on corporate reputation with the improvement of green innovation levels increase. Corporate financial performance is influenced by green innovation and social activities in a substitutional manner.