Sources of Ownership in Private Enterprises and ESG Performance: Evidence From China

The evolution of ownership structures in China's private enterprises is deeply embedded in the institutional changes of the economic transition period; this evolutionary path constitutes a significant historical determinant of their strategic behavior. This study examines private enterprises listed on the Shanghai and Shenzhen A‐share markets from 2009 to 2023 to empirically test the impact of ownership origins on corporate ESG performance and its underlying mechanisms. The main findings are as follows: (1) Compared to entrepreneurial ownership, state‐owned restructured ownership significantly enhances the ESG performance of private enterprises; (2) Media coverage and the inclusion of actual controllers on wealth rankings amplify the positive correlation between state‐owned restructured ownership and corporate ESG performance; (3) When actual controllers possess political connections, the positive correlation between state‐owned restructured ownership and corporate ESG performance weakens. This paper expands the literature on the antecedents of ESG from the perspective of historical ownership, revealing the differentiated role of the reputation mechanism under varying conditions of external oversight and political resources. It provides new theoretical explanations and practical insights for understanding the heterogeneity of ESG performance among Chinese private enterprises.