ESG performance and innovation in listed manufacturing companies–A prospect theory perspective

IF 7.4 2区经济学 Q1 BUSINESS, FINANCE

Finance Research Letters Pub Date : 2025-02-01 DOI:10.1016/j.frl.2024.106603

Xiao Lei, Qin Tu

引用次数: 0

Abstract

This paper uses panel data from Chinese manufacturing firms (2009-2023) to explore the piecewise linear relationship between ESG performance and innovation through prospect theory. The findings indicate that ESG improvements enhance innovation capabilities, with firms exhibiting behaviors like reference dependence, loss aversion, and diminishing marginal utility. These effects are more pronounced in heavily polluting industries and companies experiencing the COVID-19 pandemic. Further analysis reveals that firm-level dynamic reference points also play a role, and external attention is a crucial motivator for shifts in corporate behavior. This study provides a more comprehensive and nuanced understanding of ESG's impact on corporate innovation.

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来源期刊

Finance Research Letters BUSINESS, FINANCE-

CiteScore

11.10

自引率

14.40%

发文量

863

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