The Benefits and Determinants of Corporate ESG Performance: A Literature Review

Wang Xudong

Xi'an International Studies University

Abstract：

By systematically reviewing recent domestic and international research on corporate ESG (Environmental, Social, and Governance) performance, this paper examines the economic effects of ESG performance, its influencing factors, and its role in corporate innovation, value enhancement, internal governance, and supply chain resilience. The literature indicates that corporate ESG performance can promote the realization of economic value through multiple channels, particularly in enhancing corporate reputation, strengthening market competitiveness, and driving green innovation. However, existing research still has shortcomings regarding the dynamic effects of ESG performance, its heterogeneous impacts across industries and regions, and its specific effects on small and medium-sized enterprises (SMEs). Future research should further explore these areas to provide a more comprehensive theoretical framework for ESG performance. This paper summarizes the internal and external factors influencing corporate ESG performance, such as managerial ethical constraints, shareholder structure, policy support, and market environment, and identifies the mechanisms through which these factors affect ESG performance under different circumstances. Finally, the paper discusses the dual threshold effect of ESG performance as a mediating variable between financing efficiency and R&D investment, offering insights for future research and corporate practice.

Key Words：

ESG; ESG performance; corporate innovation; economic value; supply chain resilience; internal governance