The Impact of ESG Performance on Corporate Green Innovation: Financial Constraints as a Mediator and R&D Intensity as a Negative Moderator

Purpose - This study investigated the impact of ESG performance on corporate green innovation and verified the mediating effect of financial constraints and the moderating effect of R&D intensity on the relationship between ESG performance and corporate green innovation. Design/methodology/approach - This study collected A-share listed companies on the Shanghai and Shenzhen stock exchanges from 2018 to 2023and performed multiple regression analysis to test hypotheses. Findings - First, improving ESG performance significantly enhances corporate green innovation. Second, ESG performance can further drive green innovation by easing financing constraints. Lastly, excessive R&D investment may reduce the positive impact of ESG performance on green innovation. Research implications or Originality - Higher ESG scores attract investors and customers focused on sustainability, providing companies with more financial support and market opportunities. So, the government should actively promote the ESG development concept, support corporate investments in ESG and strengthen regulations on ESG information disclosure to ensure companies provide accurate and transparent information. Also, the government should ease corporate financing constraints through various channels, encouraging financial institutions to develop green financial products and reduce financing costs.