Affiliation:
1. China Academy of Corporate Governance Nankai University Tianjin China
2. Business School Nankai University Tianjin China
Abstract
AbstractThis study empirically examines whether and how ESG rating divergence affects corporate green innovation. Using a sample of Chinese listed companies, we find that ESG rating divergence has a positive impact on corporate green innovation. The results still hold after several robustness checks. Furthermore, we find that the positive impact of ESG rating divergence on green innovation is more pronounced in companies with higher resource advantages of independent directors and more media attention. We then discuss the economic consequences of corporate green innovation as a response to ESG rating divergence. The results suggest that this responsiveness generates an insurance‐like effect, where companies leverage green innovation as a buffer against risks related to ESG rating divergence. Overall, our study provides novel evidence that ESG rating divergence can stimulate corporate green innovation, which sheds light on the substantial impact of ESG ratings on corporate sustainability.
Funder
Humanities and Social Science Fund of Ministry of Education of China
Subject
Management, Monitoring, Policy and Law,Strategy and Management,Geography, Planning and Development,Business and International Management