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In recent years, corporate environmental, social, and governance (ESG) performance, as a key aspect of sustainable development, has garnered widespread attention worldwide. It has gradually become a ‘catalyst’ for high-quality corporate development and a key indicator for assessing long-term corporate value. Patient capital, as a form of capital that prioritises long-term returns, tends to support corporate investment in ESG initiatives. However, the existing literature still has gaps in studying corporate ESG performance from the perspective of long-term capital. To address this gap, this study used a sample of 955 companies listed in the China A-share market between 2013 and 2023 to empirically examine the impact of patient capital on corporate ESG performance. Additionally, the study explores the heterogeneity of this impact under different regulatory environments, industries, and macroeconomic conditions. The findings indicate that patient capital enhances corporate ESG performance by providing long-term and stable financial support. Moreover, its positive effect varies across different regulatory frameworks, industries, and macroeconomic contexts. After conducting robustness checks and addressing potential endogeneity issues, these conclusions are interpreted as robust. Mechanism analysis reveals that patient capital improves corporate ESG performance by alleviating financing constraints and optimizing corporate governance structures. Furthermore, this study finds that the impact of patient capital on ESG performance exhibits a time-lag effect.
Huang et al. (Tue,) studied this question.