ESG Performance and High-Quality Development of Emerging Industries: Evidence from Micro-Level Enterprise Data

DOI: https://doi.org/10.62517/jbm.202509205

Author(s)

Xincheng Zhao1, Guiyuan Hao2,*

Affiliation(s)

1School of International Business and Tourism, Suzhou Vocational Institute of Industrial Technology, Suzhou, Jiangsu, China 2 School of Economics, Guangdong Ocean University, Zhanjiang, Guangdong, China *Corresponding Author

Abstract

Based on a study utilizing panel data from China's A-share listed firms within strategic emerging industries spanning from 2018 to 2023, an empirical exploration of the interplay between ESG performance, R&D innovation, and enterprise high-quality development was conducted. The empirical findings indicate a positive link between corporate ESG performance and high-quality development, with the governance dimension showing the most substantial connection. ESG performance amplifies the role of R&D innovation in promoting high-quality development. Notably, a U-shaped relationship is observed between ESG performance and high-quality development, where exceeding a critical ESG score threshold accelerates advancement. Likewise, R&D innovation exhibits a U-shaped impact on high-quality development, with performance enhancements gaining momentum beyond a particular threshold. However, the interaction between overall ESG performance and R&D innovation does not exhibit statistical significance. Drawing from these insights, policymakers are recommended to implement a multifaceted strategy encompassing regulatory reforms, R&D tax incentives, and ESG scoring objectives, bolstered by technical support and intellectual property protection. This comprehensive approach can effectively foster upgrades in corporate ESG governance, innovation capabilities, and management models, thereby driving sustainable, high-quality development in emerging industries.

Keywords

ESG Performance; R&D Innovation; High-Quality Development; Nonlinear Relationship; Threshold Effect

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