Supply Chain Vertical Shareholding and Corporate ESG Performance: Evidence from China

Using data from Chinese listed firms from 2009 to 2023, this study empirically examines the intensity impact of vertical shareholding among business partners within supply chains on corporate ESG performance, based on a final sample of 349 observations from 134 firms. We discover that the intensity effect of supply chain vertical shareholding on corporate ESG performance is significantly positive, and this positive effect is more pronounced in the S (social) component. Our main findings still hold under robustness testing, such as Heckman’s two-stage method, replacing the variable measurement method, and replacing the model. We also show that the intensity of supply chain vertical shareholding may improve corporate ESG performance by reducing financing costs. Our findings provide theoretical support and empirical evidence for promoting sustainable corporate development and optimizing supply chain cooperation.