On the Impact of Regional Social Trust on Corporate ESG Performance
High-quality development remains the core focus of China's economic expansion and improving corporate ESG performance contributes to the achieving of the goal.Using data from listed companies on Shanghai and Shenzhen Stock Exchanges from 2011-2021,this paper studies the impact of regional social trust on corporate ESG performance.According to the research,regional social trust tremendously promotes corporate ESG performance.Heterogeneity analysis shows that social trust has a more pronounced effect on corporate ESG performance for privately owned enterprises,companies located in areas with inadequate legal systems,or companies with lower analyst attention.Further analysis finds that regional social trust primarily promotes ESG practices by alleviating constraints of corporate financing and reducing agency costs.These findings are helpful for understanding the mechanisms through which regional social trust impacts micro-enterprises,and provide theoretical support and empirical evidence for the improvement of corporate ESG performance and the development of China's ESG.
regional social trustcorporate ESG performanceconstraints of corporate financingagency costs
NETL
NSTL
万方数据
