ESG Performance and Foreign Investors’ Entry: Micro Evidence from Foreign Investment Equity Changes
AN Zhanran1, WANG Shuai2, BAN Yuanhao3
1. School of International Economics and Trade, Lanzhou University of Finance and Economics, Lanzhou 730020, China; 2. School of Economics, Capital University of Economics and Business, Beijing 100070, China; 3. Institute of Quantitative Economics and Technological Economics, Chinese Academy of Social Sciences, Beijing 100732, China
Abstract Based on a sample of A-share listed enterprises from 2009 to 2022, this paper systematically examines the impact and mechanism of ESG performance of enterprises on foreign investors from the perspective of sustainable development. The Study shows that good ESG performance of companies can help promote the entry of foreign investors. After a series of robustness tests, this conclusion is still true. Moreover, this positive effect is more obvious in high-tech industries, facing strong environmental regulations and higher environmental uncertainty. The effect decomposition of ESG performance shows that good environmental, social responsibility and corporate governance performance of enterprises can promote the entry of foreign investors. And compared with social responsibility performance, environmental and corporate governance performance, it is more conducive to attracting foreign investors. Mechanism testing shows that reducing the degree of information asymmetry and investment risks faced by foreign investors is a channel for ESG performance to promote the entry of foreign investors. Expanded analysis found that differences in ESG evaluation will weaken companies’ attractiveness to foreign investors. The research conclusions provide empirical evidence and policy reference for my country to further promote ESG construction and achieve high-level opening up.
2024, Vol. 41 
