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ORIGINAL RESEARCH article

Front. Sustain. Energy Policy
Sec. Policy and Environmental Impact
Volume 3 - 2024 | doi: 10.3389/fsuep.2024.1493355
This article is part of the Research Topic Incentive Policies for Green Innovation, Energy Efficiency, Environmental Protection, and Sustainability View all 3 articles

How components of ESG performance impact corporate risk-taking?

Provisionally accepted
Chuanwang Sun Chuanwang Sun 1,2*Shuangji Lu Shuangji Lu 1Yaodan Zhang Yaodan Zhang 2
  • 1 School of Economics, Xiamen University, Xiamen, China
  • 2 Nanchang University, Nanchang, Jiangxi Province, China

The final, formatted version of the article will be published soon.

    Corporate risk-taking (CRT) is crucial for sustainable business development. The focus of this study is to examine the relationship between components of ESG performance (ESGP) and corporate risk-taking. We conduct an empirical analysis using CSI ESG score data of A-share listed companies on the Shanghai and Shenzhen stock exchanges from 2009 to 2022. The conclusions are as follows: (1) ESGP exerts a facilitating effect on CRT. Specifically, environmental performance inhibit CRT, whereas social responsibility and corporate governance performance enhance CRT. (2) The facilitating effect of ESGP on CRT is more pronounced at lower levels of equity concentration. (3) ESGP enhances CRT by increasing the level of innovation and institutional investor shareholding.The contribution of this study is to help firms change CRT by adjusting the components of ESGP.

    Keywords: ESG performance, Corporate risk-taking, equity concentration, innovation levels, institutional investor shareholding

    Received: 09 Sep 2024; Accepted: 14 Oct 2024.

    Copyright: © 2024 Sun, Lu and Zhang. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

    * Correspondence: Chuanwang Sun, School of Economics, Xiamen University, Xiamen, China

    Disclaimer: All claims expressed in this article are solely those of the authors and do not necessarily represent those of their affiliated organizations, or those of the publisher, the editors and the reviewers. Any product that may be evaluated in this article or claim that may be made by its manufacturer is not guaranteed or endorsed by the publisher.