Institutional pressures, attention allocation, and corporate ESG performance
- Qingrui Shi 1, Yong Mai 1
- Qingrui Shi 1, Yong Mai 1
- 1Business School, East China University of Science and Technology, No.130, Meilong Road, Xuhui District, Shanghai, 200237, China.
- 0Business School, East China University of Science and Technology, No.130, Meilong Road, Xuhui District, Shanghai, 200237, China.
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View abstract on PubMed
Summary
This summary is machine-generated.External pressures like coercive, normative, and imitative forces significantly boost corporate environmental, social, and governance (ESG) performance. These pressures increase ESG attention, especially for non-state-owned firms.
Area Of Science
- Business and Management
- Corporate Social Responsibility
- Institutional Theory
Background
- Increasing complexity of the institutional environment necessitates greater focus on corporate environmental, social, and governance (ESG) practices.
- Firms face significant external institutional pressures influencing their ESG strategies and performance.
- Understanding the drivers of corporate ESG performance is crucial for sustainable development.
Purpose Of The Study
- To investigate the relationship between coercive, normative, and imitative institutional pressures and the ESG performance of Chinese A-share listed companies.
- To explore the mediating role of ESG attention and the moderating effect of organizational slack.
- To examine heterogeneity in the impact of institutional pressures across different types of firms.
Main Methods
- Quantitative analysis of Chinese A-share listed company data from 2011 to 2021.
- Regression analysis to assess the impact of institutional pressures on ESG performance.
- Mediation and moderation analyses to understand the underlying mechanisms and contextual factors.
Main Results
- Coercive, normative, and imitative institutional pressures significantly enhance corporate ESG performance.
- Increased ESG attention mediates the positive effect of institutional pressures on ESG performance.
- Organizational slack positively moderates the relationship between institutional pressures and ESG performance.
- The impact of multiple institutional pressures is more pronounced for non-state-owned companies, non-heavy polluters, and low-profit firms.
Conclusions
- External institutional pressures are key drivers of improved corporate ESG performance.
- Firms can enhance ESG performance by increasing attention to ESG issues, influenced by institutional demands.
- Organizational slack plays a vital role in facilitating the positive effects of institutional pressures.
- Targeted strategies considering firm characteristics are essential for maximizing the benefits of institutional pressures for sustainable development.
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