The Dual Impact of Sustainability Disclosure on Corporate Performance: An Empirical Analysis of Chinese Firms DOI
Presley K. Wesseh, Yuqing Zhong, Hermas Abudu

et al.

Business Strategy and the Environment, Journal Year: 2025, Volume and Issue: unknown

Published: May 3, 2025

ABSTRACT In recent years, the growing challenges posed by climate change have underscored importance of sustainability disclosure in corporate governance and investment strategies. This study examines dual effects disclosure, measured ESG scores, on performance through a moderated analysis. Using fixed‐effects model, analyzes data from 4943 Chinese firms between 2011 2021. The results indicate that has impact: It significantly negatively affects financial performance. Further analysis reveals these impacts are firm's capital structure size. Specifically, with high growth prospects (as indicated price‐to‐book ratio) experience enhanced market due to whereas highly leveraged may suffer losses. Additionally, positive effect is more pronounced medium‐sized firms, highlighting significant role firm size relationship By analyzing moderating this offers new insights into also proposes several policy recommendations, including integrating as core objective incentive mechanisms, promoting innovation compensation strategies, enhancing stakeholder engagement.

Language: Английский

The Dual Impact of Sustainability Disclosure on Corporate Performance: An Empirical Analysis of Chinese Firms DOI
Presley K. Wesseh, Yuqing Zhong, Hermas Abudu

et al.

Business Strategy and the Environment, Journal Year: 2025, Volume and Issue: unknown

Published: May 3, 2025

ABSTRACT In recent years, the growing challenges posed by climate change have underscored importance of sustainability disclosure in corporate governance and investment strategies. This study examines dual effects disclosure, measured ESG scores, on performance through a moderated analysis. Using fixed‐effects model, analyzes data from 4943 Chinese firms between 2011 2021. The results indicate that has impact: It significantly negatively affects financial performance. Further analysis reveals these impacts are firm's capital structure size. Specifically, with high growth prospects (as indicated price‐to‐book ratio) experience enhanced market due to whereas highly leveraged may suffer losses. Additionally, positive effect is more pronounced medium‐sized firms, highlighting significant role firm size relationship By analyzing moderating this offers new insights into also proposes several policy recommendations, including integrating as core objective incentive mechanisms, promoting innovation compensation strategies, enhancing stakeholder engagement.

Language: Английский

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