Government Subsidies, ESG, and Managerial Performance : Evidence from China

초록

This study investigates the relationship between ESG performance andmanagerial financial performance in Chinese listed firms from 2015 to 2021. We find a robust positive relationship between ESG performance andmanagerial financial performance. Notably, the impact of ESG performanceon financial outcomes is more pronounced when using domestic ESG ratingscompared to international ratings. Moreover, our analysis reveals thatsuperior ESG performance predicts greater future government subsidies,indicating the government’s role in incentivizing corporate ESG investments. Lastly, the intermediary effect of government subsidies attenuates thepositive relationship between ESG performance and financial performance,suggesting nuanced implications for policy and managerial decision-making.

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