Based on panel data from Chinese A-share listed companies during 2014–2023 and employing text analysis to measure Sustainable Business Model Innovation (SBMI), this study investigates how corporate ESG performance promotes SBMI. The results reveal that firms with superior ESG ratings tend to exhibit stronger SBMI capabilities. Furthermore, patient capital and corporate reputation serve as partial mediators in this relationship, indicating that ESG indirectly promotes SBMI by attracting long-term-oriented capital and enhancing a firm’s reputation. Based on these observations, it is advised that the participation of green investors, the advancement of digital transformation, and the implementation of government innovation subsidies all significantly strengthen the positive impact of ESG on SBMI. Based on these findings, this paper recommends that (1) governments enhance innovation subsidy policies, (2) enterprises deepen the integration of ESG practices with digital transformation and actively attract green investors, and (3) green investors use financial tools to support the development of SBMI. These combined efforts can thereby jointly promote the sustainable transformation of enterprises.

Amid the push for sustainable and high-quality development, corporate environmental, social, and governance (ESG) performance has garnered increasing attention from stakeholders. This empirical study uses a 2009–2022 panel of 1264 A-share-listed companies to examine the impact of ESG performance on corporate sustainability paths and to identify the channels through which this impact operates. Ordinary least squares estimates show that stronger ESG performance is associated with significantly higher total factor productivity, and the effect is more pronounced in heavy-polluting industries. Mechanism tests indicate that ESG disclosure mediates this relationship, with its influence emerging over time and strengthening in subsequent years. The mediation also varies across ESG pillars, with social disclosure exerting the most decisive influence. These findings provide actionable insights—both motivating managers to strengthen their ESG engagement and informing policymakers as they seek to refine regulatory frameworks. By highlighting the value-creating role of ESG in aligning growth with sustainability, this study offers a novel perspective on corporate transformation within the context of a rapidly evolving economic landscape.

Purpose: This study aims to examine the risk-resistant role of environmental, social and governance (ESG) performance in the capital market, focusing on an organizational standpoint. Furthermore, it aims to offer management decision advice to companies seeking protection against stock market risks. Conclusions obtained through this research have the potential to enrich the economic consequences of ESG performance, provide practical implications for enhancing corporate ESG performance, improving corporate information quality and stabilizing capital market development. Design/methodology/approach: Based on the data of Chinese A-share listed companies from 2009 to 2020, this study examines the risk-resistant function of ESG performance in the capital market. The impact of ESG performance on management behavior is analyzed from the perspective of organizational management and the three mechanisms of pre-event, during the event and post-event. Findings: This paper demonstrates that companies that effectively implement ESG practices are capable of effectively mitigating risks associated with stock price crashes. Heterogeneity analysis reveals that the inhibitory effect of ESG performance on stock price crash risk is more pronounced in nonstate-owned enterprises and enterprises with higher levels of marketization. After controlling for issues such as endogeneity, the conclusions of this paper are still valid. The mechanism analysis indicates that ESG performance reduces the risk of stock price crash through three paths of organizational management: pre-event, during the event and post-event. That is, ESG performance plays the role of restraining managers’ opportunistic behavior, reducing information asymmetry and boosting investor sentiment. Originality/value: This paper provides new insights into the relationship between ESG performance and stock price crash risk from an organizational management perspective. This study establishes three impact mechanisms (governance effect, information effect and insurance effect), offering a theoretical basis for strategic corporate decisions of risk management. Additionally, it comprehensively examines the contextual differences in the role of ESG performance, shedding light on the specific domains where ESG practices are influential. These findings offer valuable insights for promoting stable development in the capital market and fostering the healthy growth of the real economy.

In 2016, the People’s Bank of China (PBC) together with multiple departments issued the Guidance on Building a Green Financial System (the Guidance), which marked a great breakthrough in China’s green finance policy. Aiming to clarify the actual impact and underlying mechanisms of green finance policy on Chinese listed companies’ ESG disclosure quality, this study employs the difference-in-differences (DID) model and examines the impact of the Guidance on ESG disclosure practices of A-share listed companies on the Shanghai Stock Exchange (SSE) and the Shenzhen Stock Exchange (SZSE) during the period 2006 to 2022. This study reveals a positive correlation between the Guidance and listed companies’ ESG disclosure. Upon further examination, it becomes evident that the Guidance has a more noticeable positive impact on the quality of ESG disclosure among listed companies that operate in industries with high levels of pollution, state-owned enterprises, and regions that exhibit greater levels of economic development. This paper provides essential insights to policymakers, facilitating a deeper understanding and more thorough assessment of the economic implications of green finance policies. Additionally, it acts as a strategic resource for listed companies, guiding the enhancement of corporate ESG disclosures and the implementation of ESG strategies influenced by green finance policies.