ORIGINAL RESEARCH
The Role of Environmental Regulations in Shaping Companies' ESG Performance: Evidence from China's Prevention and Control of Atmospheric Pollution
,
 
,
 
Feng Yu 3,4
 
 
 
More details
Hide details
1
Faculty of Business, Macao Polytechnic University, R. de Luís Gonzaga Gomes, Macau, China
 
2
Faculty of Finance, City University of Macau, Avenida Padre Tomás Pereira Taipa, Macau, China
 
3
Law School, Zhejiang University of Technology, Hangzhou, China
 
4
Faculty of Humanities and Social Sciences, Macao Polytechnic University, Macau, China
 
 
Submission date: 2024-05-29
 
 
Final revision date: 2024-07-22
 
 
Acceptance date: 2024-08-29
 
 
Online publication date: 2024-10-29
 
 
Corresponding author
Longsheng Wu   

Faculty of Finance, City University of Macau, Avenida Padre Tomás Pereira Taipa, Macau, China
 
 
 
KEYWORDS
TOPICS
ABSTRACT
This study investigates the impact of environmental regulatory policies on corporate Environmental, Social, and Governance (ESG) performance, utilizing China's atmospheric pollution prevention and control policies as a quasi-experiment. Employing a difference-in-differences model and utilizing data from Chinese A-share listed companies in Shanghai and Shenzhen spanning from 2009 to 2022, the study empirically examines the relationship between atmospheric pollution prevention and control policies and corporate ESG performance. The results reveal a significant positive association between atmospheric pollution prevention and control policies and the ESG performance of listed companies, a relationship that withstands various robustness tests. Furthermore, heterogeneity analysis indicates that the impact of atmospheric pollution prevention policies is more pronounced among state-owned enterprises and highly polluting enterprises. These findings underscore the critical role of environmental regulations in driving corporate sustainability practices and have implications for policymakers and practitioners seeking to promote sustainable development initiatives.
eISSN:2083-5906
ISSN:1230-1485
Journals System - logo
Scroll to top