Research On The Impact Of ESG Performance On Enterprise Innovation Performance

The high-quality development of China’s economy requires abandoning the traditional resource-dependent economic growth model and achieving sustainable development of harmonious coexistence between human beings and nature through innovation.At the same time,innovation driven green development will help achieve the goal of Chinese path to modernization.As a leading force in promoting economic development,enterprises are pursuing economic benefits while practicing the ESG concept to achieve green development of enterprises,which has become the focus of appeals and attention from all sectors of society in recent years.The ESG concept is a modern responsible investment concept that integrates the coordinated development of environmental responsibility,social responsibility,and corporate governance within the framework of the responsible investment concept.It reflects the non-financial performance of enterprises,focuses on the comprehensive level of enterprises in environmental protection,social responsibility fulfillment,and corporate governance capabilities,and coincides with current sustainable development strategies and high-quality development goals,has received widespread attention from all walks of life.Among them,ESG rating agencies and investors use market mechanisms to force companies to improve their ESG performance and help them achieve green transformation.Therefore,studying the impact of ESG performance on enterprise innovation performance has important theoretical and practical significance.This paper selects the data of Shanghai and Shenzhen A-share listed companies from2014 to 2021 as a research sample,and focuses on the impact of ESG performance on enterprise innovation performance.At the same time,based on the perspective of financing constraints,it explores the mechanism of ESG performance affecting enterprise innovation performance.The empirical results show that ESG performance can significantly improve the innovation performance of enterprises.The empirical results show that ESG performance can significantly improve the innovation performance of enterprises.After categorizing patent types,it was found that ESG performance has a significant incentive effect on invention patents,utility model patents,and design patents.This indicates that the better the ESG performance of enterprises,the more it helps to increase the number of invention patents,utility model patents,and design patent applications.On this basis,this paper further verifies that corporate ESG performance can promote corporate innovation performance by alleviating the level of financing constraints.The results of heterogeneity analysis indicate that ESG performance has a more significant promoting effect on innovation performance of non-state-owned enterprises,heavily polluting enterprises,non dual management positions,and enterprises with high frequency of board meetings.Based on the above research results,this paper proposes the following recommendations: Enterprises should establish the concept of sustainable development and attach importance to ESG performance,improve their awareness of practicing ESG concepts,alleviate financing constraints through good ESG performance,improve enterprise innovation performance,and achieve high-quality sustainable development;The government should establish a unified ESG rating system,strengthen supervision,encourage more enterprises to attach importance to fulfilling their ESG responsibilities and actively disclose ESG related information,improve ESG performance,and achieve coordinated development between enterprises and society.