The dynamics of peer influence in corporate ESG practices

IF 7.5 1区经济学 Q1 BUSINESS, FINANCE

International Review of Financial Analysis Pub Date : 2025-03-26 DOI:10.1016/j.irfa.2025.104186

Yang Gao , Siqiang Liu , Lu Yang

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引用次数: 0

Abstract

This study explores the influence of peer effects on corporate environmental, social, and governance (ESG) performance, focusing its overall construct, underlying mechanisms, and economic consequences. Using data from A-share listed companies on the Shanghai and Shenzhen stock exchanges from 2011 to 2022, the analysis reveals significant industry-level peer effects, demonstrating that competitors play a crucial role in shaping firms' ESG practices. The study identifies two primary mechanisms driving these effects: social learning and market competition. Follower firms tend to emulate the ESG practices of industry leaders, whereas competitive market dynamics further amplify this behavior. Additionally, the study highlights the heterogeneity of peer effects, which vary based on firm age, institutional long-term investment holdings, and the marketization index. Although peer effects can mitigate short-term information asymmetry, they often negatively impact long-term market value, particularly for firms lagging in ESG performance. These findings offer practical insights for firms seeking to develop sustainable and customized ESG strategies and provide policymakers with guidance for strengthening regulatory frameworks to promote long-term ESG value creation.

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企业ESG实践中同伴影响的动态

本研究探讨了同行效应对企业环境、社会和治理（ESG）绩效的影响，重点关注其总体结构、内在机制和经济后果。利用 2011 年至 2022 年沪深证券交易所 A 股上市公司的数据，分析揭示了显著的行业水平同行效应，表明竞争对手在塑造企业的环境、社会和治理实践方面发挥着至关重要的作用。研究发现了驱动这些效应的两个主要机制：社会学习和市场竞争。追随者企业倾向于效仿行业领导者的环境、社会和公司治理实践，而市场竞争动态则进一步放大了这种行为。此外，该研究还强调了同行效应的异质性，它因企业年龄、机构长期投资持股量和市场化指数而异。虽然同行效应可以缓解短期信息不对称，但往往会对长期市场价值产生负面影响，尤其是对环境、社会和公司治理表现落后的公司而言。这些发现为寻求制定可持续和定制化环境、社会和公司治理战略的公司提供了实用的见解，并为政策制定者加强监管框架以促进长期环境、社会和公司治理价值创造提供了指导。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Review of Financial Analysis BUSINESS, FINANCE-

CiteScore

10.30

自引率

9.80%

发文量

366

期刊介绍： The International Review of Financial Analysis (IRFA) is an impartial refereed journal designed to serve as a platform for high-quality financial research. It welcomes a diverse range of financial research topics and maintains an unbiased selection process. While not limited to U.S.-centric subjects, IRFA, as its title suggests, is open to valuable research contributions from around the world.