Assessing the impact of government environmental attention on corporate ESG performance: Empirical insights from A-share listed firms in China

Xiaoling Ouyang; Xin Yao; Ru Fan

doi:10.1016/j.irfa.2025.104164

Assessing the impact of government environmental attention on corporate ESG performance: Empirical insights from A-share listed firms in China

Xiaoling Ouyang
, Xin Yao^*
, Ru Fan

^*Corresponding author for this work

School of Economics and Management

Xiamen University

Research output: Contribution to journal › Article › peer-review

9 Scopus citations

Abstract

This study assesses the impact of Governmental Environmental Attention (GEA) on the ESG performance of A-share listed firms in China from 2011 to 2020. Utilizing Python for textual analysis of government reports, we quantified local governments' environmental attention and its influence on ESG. Findings indicate that increased governmental attention significantly boosts ESG performance, especially in privately-owned and politically-connected firms, due to higher regional environmental investments and stronger internal and media scrutiny. The impact of GEA is further moderated by executives' political connections, with varying effects across different regional and economic contexts. These results underscore the importance of integrating environmental policies in corporate strategies to enhance economic quality and productivity.

Original language	English
Article number	104164
Journal	International Review of Financial Analysis
Volume	103
DOIs	https://doi.org/10.1016/j.irfa.2025.104164
State	Published - Jul 2025

Keywords

ESG performance
Environmental attention
Government work report
High-quality economic development

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1016/j.irfa.2025.104164

Cite this

@article{d6e25b0981944f28a04752aa05c54d67,

title = "Assessing the impact of government environmental attention on corporate ESG performance: Empirical insights from A-share listed firms in China",

abstract = "This study assesses the impact of Governmental Environmental Attention (GEA) on the ESG performance of A-share listed firms in China from 2011 to 2020. Utilizing Python for textual analysis of government reports, we quantified local governments' environmental attention and its influence on ESG. Findings indicate that increased governmental attention significantly boosts ESG performance, especially in privately-owned and politically-connected firms, due to higher regional environmental investments and stronger internal and media scrutiny. The impact of GEA is further moderated by executives' political connections, with varying effects across different regional and economic contexts. These results underscore the importance of integrating environmental policies in corporate strategies to enhance economic quality and productivity.",

keywords = "ESG performance, Environmental attention, Government work report, High-quality economic development",

author = "Xiaoling Ouyang and Xin Yao and Ru Fan",

note = "Publisher Copyright: {\textcopyright} 2025 Elsevier Inc.",

year = "2025",

month = jul,

doi = "10.1016/j.irfa.2025.104164",

language = "英语",

volume = "103",

journal = "International Review of Financial Analysis",

issn = "1057-5219",

publisher = "Elsevier Inc.",

}

TY - JOUR

T1 - Assessing the impact of government environmental attention on corporate ESG performance

T2 - Empirical insights from A-share listed firms in China

AU - Ouyang, Xiaoling

AU - Yao, Xin

AU - Fan, Ru

PY - 2025/7

Y1 - 2025/7

N2 - This study assesses the impact of Governmental Environmental Attention (GEA) on the ESG performance of A-share listed firms in China from 2011 to 2020. Utilizing Python for textual analysis of government reports, we quantified local governments' environmental attention and its influence on ESG. Findings indicate that increased governmental attention significantly boosts ESG performance, especially in privately-owned and politically-connected firms, due to higher regional environmental investments and stronger internal and media scrutiny. The impact of GEA is further moderated by executives' political connections, with varying effects across different regional and economic contexts. These results underscore the importance of integrating environmental policies in corporate strategies to enhance economic quality and productivity.

AB - This study assesses the impact of Governmental Environmental Attention (GEA) on the ESG performance of A-share listed firms in China from 2011 to 2020. Utilizing Python for textual analysis of government reports, we quantified local governments' environmental attention and its influence on ESG. Findings indicate that increased governmental attention significantly boosts ESG performance, especially in privately-owned and politically-connected firms, due to higher regional environmental investments and stronger internal and media scrutiny. The impact of GEA is further moderated by executives' political connections, with varying effects across different regional and economic contexts. These results underscore the importance of integrating environmental policies in corporate strategies to enhance economic quality and productivity.

KW - ESG performance

KW - Environmental attention

KW - Government work report

KW - High-quality economic development

UR - https://www.scopus.com/pages/publications/105001548163

U2 - 10.1016/j.irfa.2025.104164

DO - 10.1016/j.irfa.2025.104164

M3 - 文章

AN - SCOPUS:105001548163

SN - 1057-5219

VL - 103

JO - International Review of Financial Analysis

JF - International Review of Financial Analysis

M1 - 104164

ER -

Assessing the impact of government environmental attention on corporate ESG performance: Empirical insights from A-share listed firms in China

Abstract

Keywords

UN SDGs

Access to Document

Other files and links

Fingerprint

Cite this