Advances in Consumer Research
Issue:6 : 2135-2145
Original Article
Environmental, Social, and Governance Performance and Corporate Financialization: A Conceptual and Theoretical Review
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1
Graduate School of Management, Post Graduate Center, Management and Science University, University Drive, Off Persiaran Olahraga, Section 13, 40100, Selangor, Malaysia.
Abstract

China's new development values of "innovation, coordination, green development, openness, and sharing." and ESG promote sustainable green development. China's "dual-carbon" goals in September 2020 made social stakeholder priorities sustainable development. China prioritizes green development to build an ecological civilization and coordinate economic, environmental, social, and other development research. China requires environmental information disclosure rules to encourage local listed companies to practice ESG and promote ESG grading. China's "shifting from the real economy to virtual economy" trend has grown as more non-financial companies hold financial assets to avoid risks or make speculative profits. Corporate financialization’s impacts must be examined. If companies disperse financial assets, would environmental, social, and corporate governance effect financialization? To answer this, this study examines ESG performance and corporate financialization conceptually and empirically. ESG performance's impact on corporate financialization for non-financial listed companies on China's ChiNext from 2014 to 2024 is empirically evaluated in this theoretical mechanism study. This study first reviews existing literature and uses Agency Theory, Information Asymmetry Theory, Signaling Theory, and China's ChiNext market characteristics to summaries the E, S, and G dimensions of ESG and corporate financialization, as well as green innovation and financing constraints' mediating roles. Second, benchmark regression, mediation effect, and other tests suggest that ChiNext-listed non-financial firms' financialization may be affected by ESG performance. Media attention from ESG hinders business financialization by influencing sustainable development and investment decisions, according to this essay. Robustness tests replace explained and explanatory factors, vary sample time range, and other approaches to ensure reliability..

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