Related Experiment Video
Updated: Jun 12, 2025
03:36
Development of Compendium for Esophageal Squamous Cell Carcinoma
Published on: April 12, 2024
389
Global geopolitical risk and corporate ESG performance.
Yong Jiang1, Tony Klein2, Yi-Shuai Ren3
1School of Finance, Nanjing Audit University, Nanjing, China.
Journal of Environmental Management
|September 17, 2024
Summary
Global geopolitical risk (GPR) negatively affects Chinese companies' environmental, social, and governance (ESG) performance. This impact is more severe for non-state-owned firms, those in decline, and those with fewer political connections.
Area of Science:
- Economics
- Finance
- Sustainability Studies
Background:
- Global geopolitical risk (GPR) is a significant factor influencing international business environments.
- Environmental, Social, and Governance (ESG) performance is increasingly critical for corporate reputation and long-term viability.
- Understanding the interplay between geopolitical instability and corporate sustainability practices is essential for stakeholders.
Purpose of the Study:
- To investigate the impact of global geopolitical risk (GPR) on the environmental, social, and governance (ESG) performance of Chinese enterprises.
- To identify specific enterprise characteristics that exacerbate or mitigate the negative effects of GPR on ESG performance.
- To explore the underlying mechanisms through which GPR influences ESG outcomes.
Main Methods:
- Utilized panel data from Chinese A-share listed enterprises spanning the period 2011-2020.
- Employed econometric models to analyze the relationship between GPR and ESG performance.
- Conducted heterogeneity and mechanism analyses to explore moderating factors and causal pathways.
Main Results:
- A significant negative relationship was found between global GPR and the ESG performance of Chinese enterprises.
- The detrimental effect of GPR on ESG performance was more pronounced in non-state-owned enterprises, firms in their decline phase, those with higher institutional investor holdings, and those lacking political connections.
- Financing constraints and reduced competitiveness were identified as key channels through which GPR negatively impacts ESG performance.
Conclusions:
- Global geopolitical risk poses a substantial threat to the ESG performance of Chinese companies.
- Firm-specific characteristics significantly moderate the impact of GPR, highlighting the need for tailored risk management strategies.
- Addressing financing constraints and enhancing competitiveness are crucial for mitigating the adverse effects of geopolitical instability on corporate sustainability.
Related Concept Videos
01:50Threats to Biodiversity
22.2K
There have been five major extinction events throughout geological history, resulting in the elimination of biodiversity, followed by a rebound of species that adapted to the new conditions. In the current geological epoch, the Holocene, there is a sixth extinction event in progress. This mass extinction has been attributed to human activities and is thus provisionally called the Anthropocene. In 2019 the human population reached 7.7 billion people and is projected to comprise 10 billion by...
22.2K
01:16What is Climate?
18.4K
Climate refers to the prevailing weather conditions in a specific area over an extended period. As the saying goes, “Climate is what you expect. Weather is what you get.” Climate is influenced by geographic factors, such as latitude, terrain, and proximity to bodies of water.
18.4K
01:29Applications of GIS: Disaster Management and Emergency Response
63
Geographic Information System (GIS) technology is essential for risk identification, action prioritization, and resource optimization in critical situations like flooding and earthquakes. By integrating spatial and demographic data, GIS provides a comprehensive framework for emergency response.GIS integrates data layers, like rainfall intensity, topography, elevation profiles, and river levels, to model high-risk flood zones. These layers assess areas susceptible to flooding based on their...
63
02:26Ecological Disturbance
17.0K
An ecological disturbance is a temporary disruption in the environment resulting from abiotic, biotic, or anthropogenic factors, causing a pronounced change in an ecosystem. The impact of an ecological disturbance, which can depend on its intensity, frequency, and spatial distribution, plays a significant role in shaping the species diversity within the ecosystem.
17.0K
01:20Psychological Responses to Stress
47
Psychological responses to stress encompass the various cognitive and emotional reactions individuals experience when faced with challenging or threatening situations, such as a job loss. Prolonged exposure to stressors can disturb emotional balance, increasing negative emotions (e.g., anxiety and sadness) and diminishing positive emotions (e.g., joy and satisfaction). These persistent emotional shifts are associated with an increased risk of both physical illness and mental health issues, such...
47
01:26Errors in Global Positioning System
39
Global Positioning System (GPS) technology has revolutionized navigation and positioning, but its accuracy is often compromised by various errors. These errors, stemming from environmental, satellite, and receiver-related factors, require careful mitigation to ensure reliable performance across applications.Atmospheric ErrorsGPS signals travel through the Earth’s ionosphere and troposphere, introducing delays which affect accuracy. The ionosphere is strongly influenced by charged particles,...
39