Reform of the Administrative Approval System and Corporate ESG Performance:An Exploration of A Market-Oriented Governance Mechanism
Improving the ESG performance of enterprises is an important part of achieving the goals of"double carbon"and the sustainable development of the economy and society.This paper conducts a quasi-natural experiment to analyze the impact of the reform of the administrative licensing system on the ESG(environment,society and governance)performance of enterprises based on the establish-ment of regional administrative licensing centers(ALCs).The findings of the empirical study show that the reform of the administrative approval system can improve the ESG performance of enterpris-es.In terms of its working path,the reform of the administrative approval system mainly enhances corporate ESG performance by inhibiting management short-sightedness,reducing institutional transac-tion costs,and intensifying market competition.The heterogeneity test reveals that the effect of the re-form of the approval system on improving the ESG performance of enterprises is more significant in private enterprises,enterprises with a higher entrepreneurial spirit,and enterprises in regions with a poorer relation between the government and market.From the perspective of market investors and supply chain relationships,the reform of the administrative approval system not only improves the ESG performance of enterprises but also helps to enhance their operational efficiency and the ability to obtain commercial credit.Therefore,China's ESG governance practices should continue to move towards the market-oriented reform,improve the market-based allocation system of factors of produc-tion,and give full play to the decisive role of the market in resource allocation.
marketizationadministrative licensing centerscorporate ESG performancesustain-able development
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