The Impact of ESG Performance on Innovation of Chinese Enterprises 

Chenghao Qian, Xiaojun Sun, Jingzi Xu, Ronghui Huang 

School of International Business, Zhejiang Yuexiu University, Shaoxing, Zhejiang, China 

Abstract: Scholars and practitioners widely discuss the impact of ESG performance on businesses, often linking it to financial performance or company value. However, research on its impact on corporate innovation and stakeholder heterogeneity is lacking. This study uses Chinese A-share listed companies and Shangdao Green Financial Institutions' ESG rating, finding that ESG performance boosts corporate innovation quantity and quality by alleviating financing constraints and reducing agency costs. For enterprise heterogeneity, internal governance enhances ESG's impact on innovation, while external governance by institutional investors does not. Keyword：ESG performance, corporate innovation, financing constraints, internal and external governance 

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