The Impact of ESG Performance on the Breadth of Internationalization:Evidence From the Chinese Listed Firms
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The proactive integration of Environmental, Social, and Governance (ESG) principles is crucial for corporate internationalization. Analyzing Chinese listed firms from 2009 to 2020, this study investigates the ESG performance of these companies and its influence on the scope of corporate internationalization. The results suggest that the company's ESG performance substantially amplifies its internationalization scope. Green development and digital transformation are key mechanisms through which ESG influences globalization. The distinction is observed between the effects of ESG practices fostered in a favorable environmental context versus a less conducive external information environment on a company's internationalization breadth. This study further reveals the impact of ESG performance on a company's internationalization breadth is more pronounced in environments characterized by favorable external information.This study offers strategic and policy-oriented insights on how ESG performance can be leveraged to optimize the internationalization strategies of enterprises.
