Can Coastal Ecological Restoration Promote Corporate ESG Performance? Evidence from China’s Blue Bay Remediation Action

Coastal ecological degradation poses wide-ranging challenges to marine ecosystems and the sustainable development of coastal economies. However, evidence on whether public ecological restoration policies influence corporate environmental, social, and governance (ESG) performance remains limited. This study examines China’s Blue Bay Remediation Action (BBRA), launched in 2016, as a quasi-natural experiment to assess its effects on the ESG performance of Chinese listed maritime firms. Using panel data on China’s A-share listed maritime companies from 2008 to 2021 and a PSM-IPW-DID design, we find a statistically significant positive effect of the BBRA on overall ESG scores. Positive effects are also statistically significant for the environmental and governance scores. Additional analyses indicate that BBRA implementation is associated with increased environmental subsidies, reduced financing constraints, stronger environmental regulation, and greater institutional investor attention. The positive effects are more pronounced among non-state-owned firms, firms in southern coastal regions, and firms located in cities with higher public environmental concern. The findings provide empirical evidence on the relationship between ecological restoration policies and corporate sustainable development, along with policy insights for improving coastal ecological governance and supporting firms’ green transition in China.