Interplay of ESG, Trust, and Financial Performance
Empirical Evidence From China’s Listed Companies
Bibliographic Data
| ID | 22006297 |
|---|---|
| Authors | Zhaokun Guo (0009-0003-0073-5090, Chongqing University), Weiyan Jiang (0000-0002-2323-3224, Southwest University of Political Science & Law), Kunhui Ye (0000-0002-9433-8066, Chongqing University, corresponding author) |
| Year | 2025 |
| Volume | 15 |
| Issue | 4 |
| Publication date | 2025-10-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | SAGE Open (JOURNAL) |
| Journal identifiers | ISSN: 2158-2440 • E-ISSN: 2158-2440 |
| Publisher | SAGE Publications (PUBLISHER • US) |
| DOI | 10.1177/21582440251398698 |
| OpenAlex | W4416848661 |
| Language | EN |
| References cited | 102 |
The Environmental, Social, and Governance (ESG) paradigm is emerging as a dominant driver of sustainable economic growth. A growing number of firms are adopting ESG practices, seeking not only to align with contemporary trends but also to cultivate trust. Although ESG, trust, and financial performance are frequently examined in previous studies, the mechanisms underlying their interrelationships remain underexplored. This study analyzes data from 2,351 Chinese listed firms (2015–2022) using static panel model and two-stage dynamic panel generalized method of moments (GMM). The findings reveal that ESG performance significantly boosts financial outcomes through trust. The boosting effectiveness is highly associated with market attention, public attention and the temporal consistency of ESG performance. Further research indicates that non-state-owned enterprises, firms with direct contact between products and consumers, and firms in higher economic development regions are more likely to gain trust and financial performance through ESG performance. The study complements the existing understanding of mechanisms through which ESG impacts financial performance with the crucial role of trust as an informal institution in enhancing financial performance
Corporate governance · Emerging markets · Empirical evidence · Financial institution · Financial market · Panel data · Corporate Social Responsibility Reporting · Energy, Environment, Economic Growth · Environmental Sustainability in Business
Are red or blue companies more likely to go green? Politics and corporate social responsibility
The Role of Social Capital in Financial Development
The role of ESG performance during times of financial crisis
Stakeholder legitimacy in firm greening and financial performance
Political connections and preferential access to finance
Another look at the instrumental variable estimation of error-components models
Institutions, Institutional Change and Economic Performance
How public attention drives corporate environmental protection
A Focus Theory of Normative Conduct
Social trust and new firm formation
What triggers environmental management and innovation? Empirical evidence for Germany
A Note on the Theme of Too Many Instruments
Provincial ESG performance in China
When do societal stakeholders matter for agency‐CEOs ? The role of stakeholder arrangements and social media attention
Note on the drawing power of crowds of different size
The moderator-mediator variable distinction in social psychological research
Making the News
Uncertainty, Risk, and Trust
Beyond Altruism
| Citation velocity | historical |
|---|---|
| Highly cited | No |