Does ESG Performance Affect Enterprise Innovation Performance? A Study on Governance and Resource Effects

Good ESG and enterprise innovation performance are significant drivers of high-quality economic development. Utilizing data from A-share listed companies in Shanghai and Shenzhen from 2009 to 2022, this paper employs regression analysis to explore the impact of ESG performance on enterprise innovation performance and its multiple mechanisms. The research findings indicate that ESG performance significantly enhances enterprise innovation performance, with the E (Environmental) dimension having the greatest promotional effect, followed by the G (Governance) dimension, and the S (Social) dimension coming last. These conclusions remain valid after a series of robustness checks. Regarding mechanisms, ESG performance primarily promotes enterprise innovation by improving internal control quality, alleviating financing constraints, and increasing government R&D subsidies. Heterogeneity tests reveal that the impact of ESG performance on enterprise innovation performance is more pronounced in non-state-owned enterprises, high-innovation-performance enterprises, non-heavy-pollution enterprises, growing enterprises, and central and western regions enterprises. This paper further enriches the research on the economic consequences of ESG performance and provides insights for enterprises to adopt ESG principles and actively enhance their innovation performance.