The Impact of ESG Information Disclosure on Total Factor Productivity: An Empirical Study Based on Chinese Listed Firms

With the growing global emphasis on sustainable development and corporate social responsibility, ESG (Environmental, Social, and Governance) information disclosure has become a crucial factor in corporate management and investment decision-making. Based on data from A-share listed firms in China from 2011 to 2021, this paper explores the impact of ESG information disclosure on firms' total factor productivity (TFP). The findings reveal that ESG disclosure significantly enhances corporate TFP. Mechanism tests indicate that the efficiency-boosting effect of ESG primarily operates through three pathways: alleviating financing constraints, promoting innovation, and enhancing corporate reputation. Further analysis demonstrates that ESG disclosure has a more pronounced impact on TFP improvement in heavily polluting firms, state-owned enterprises, and firms with higher corporate governance quality. The conclusions of this study provide a theoretical foundation and policy references for maximizing the advantages of ESG and enhancing corporate TFP, offering valuable insights for promoting high-quality and sustainable economic development.