{"title":"ESG Rating Disagreement and Corporate Total Factor Productivity:Inference and Prediction","authors":"Zhanli Li","doi":"arxiv-2408.13895","DOIUrl":null,"url":null,"abstract":"This paper explores the relationship between ESG rating disagreement and\ntotal factor productivity (TFP) based on data from Chinese domestic ESG rating\nagencies and financial data of A-share listed companies in China from 2015 to\n2022. On one hand, the empirical results show that ESG rating disagreement\nreduces corporate TFP, a conclusion that is validated through multiple\nrobustness tests. The mechanism analysis reveals an interaction effect between\ngreen innovation and ESG rating disagreement. Specifically, in firms without\nESG rating disagreement, green innovation promotes the improvement of TFP;\nhowever, in firms with disagreement, although ESG rating disagreement may drive\ngreen innovation, this does not lead to an increase in TFP. Furthermore, ESG\nrating disagreement lower corporate TFP by increasing financing constraints.\nThe heterogeneity analysis indicates that this effect is more pronounced in\nnon-state-owned, asset-intensive, and low-pollution enterprises. On the other\nhand, XGBoost regression demonstrates that ESG rating disagreement play a\nsignificant role in predicting TFP, with SHAP values showing that the main\neffects are more evident in firms with larger ESG rating disagreement.","PeriodicalId":501273,"journal":{"name":"arXiv - ECON - General Economics","volume":"75 1","pages":""},"PeriodicalIF":0.0000,"publicationDate":"2024-08-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"arXiv - ECON - General Economics","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/arxiv-2408.13895","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0
Abstract
This paper explores the relationship between ESG rating disagreement and
total factor productivity (TFP) based on data from Chinese domestic ESG rating
agencies and financial data of A-share listed companies in China from 2015 to
2022. On one hand, the empirical results show that ESG rating disagreement
reduces corporate TFP, a conclusion that is validated through multiple
robustness tests. The mechanism analysis reveals an interaction effect between
green innovation and ESG rating disagreement. Specifically, in firms without
ESG rating disagreement, green innovation promotes the improvement of TFP;
however, in firms with disagreement, although ESG rating disagreement may drive
green innovation, this does not lead to an increase in TFP. Furthermore, ESG
rating disagreement lower corporate TFP by increasing financing constraints.
The heterogeneity analysis indicates that this effect is more pronounced in
non-state-owned, asset-intensive, and low-pollution enterprises. On the other
hand, XGBoost regression demonstrates that ESG rating disagreement play a
significant role in predicting TFP, with SHAP values showing that the main
effects are more evident in firms with larger ESG rating disagreement.