EFFECT OF ESG PERFORMANCE ON CORPORATE GREEN TECHNOLOGY INNOVATION: THE MEDIATING ROLE OF FINANCIAL CONSTRAINTS AND DIGITAL TRANSFORMATION

There is little research on the intrinsic mechanisms between environmental, social, and governance (ESG) performance and green technology innovation among firms in developing countries. Utilizing a dataset comprising Chinese A-share listed companies in Shanghai and Shenzhen for 2015–2020, this study employs a two-way fixed-effects modeling approach, accounting for industry- and time-specific effects. The results demonstrate an affirmative relationship between firms’ ESG performance and green technology innovation, which is reinforced by state-owned enterprises and firms with dual CEO positions. This study offers a scholarly foundation for the broader transition toward a greener economy and society in China.