Environmental, social, and governance (ESG) factors are pivotal in shaping the trajectory of economic development towards a sustainable green economy and it is highly valued by regulators, investors and listed companies. The inquiry letters have been the main way for stock exchanges to regulate information disclosure. In this paper, Chinese A-share listed companies are targeted as the subjects of study to investigate the influence of inquiry letters on the ESG performance of these firms. The findings indicate that companies receiving inquiry letters demonstrate an enhanced level of ESG performance compared to those that have not been recipients of inquiry letters. The more times a company is inquired, the better its ESG performance in the current period and companies that postpone answering inquiry letters tend to enhance their ESG performance during the current reporting period.

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Inquiry Letters and Corporate ESG Performance: Evidence from China

  • Nuo Chen,
  • Ziyang Li,
  • Yanlin Li,
  • Tao Luo

摘要

Environmental, social, and governance (ESG) factors are pivotal in shaping the trajectory of economic development towards a sustainable green economy and it is highly valued by regulators, investors and listed companies. The inquiry letters have been the main way for stock exchanges to regulate information disclosure. In this paper, Chinese A-share listed companies are targeted as the subjects of study to investigate the influence of inquiry letters on the ESG performance of these firms. The findings indicate that companies receiving inquiry letters demonstrate an enhanced level of ESG performance compared to those that have not been recipients of inquiry letters. The more times a company is inquired, the better its ESG performance in the current period and companies that postpone answering inquiry letters tend to enhance their ESG performance during the current reporting period.