DOAJ Open Access 2025

ESG performance and corporate labor investment efficiency: Evidence from China

Xiangyang Yang Cong Wang Bei Liu

Abstrak

This paper investigates the impact of ESG (Environmental, Social, and Governance) performance on corporate labor investment efficiency in the Chinese market. We find that ESG performance can enhance labor investment efficiency. Additionally, this paper identifies that managerial myopia and the lack of financial expertise among management can hinder the positive effects of ESG on labor investment efficiency. Further, we discover that ESG can improve labor investment efficiency through the mediating role of R&D investments. Moreover, ESG tends to be more effective in enhancing labor investment efficiency in non-state-owned enterprises, in enterprises with low labor intensity, and in those that are in the growth or maturity stages of their business cycle. The conclusions remain robust after addressing issues of endogeneity, selection bias, and other methodological concerns. Overall, this paper enriches our understanding of the relationship between ESG and corporate labor investment efficiency.

Penulis (3)

X

Xiangyang Yang

C

Cong Wang

B

Bei Liu

Format Sitasi

Yang, X., Wang, C., Liu, B. (2025). ESG performance and corporate labor investment efficiency: Evidence from China. https://doi.org/10.1016/j.iref.2025.103909

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Informasi Jurnal
Tahun Terbit
2025
Sumber Database
DOAJ
DOI
10.1016/j.iref.2025.103909
Akses
Open Access ✓