ESG performance and corporate innovation under the moderating effect of firm size

Through an empirical analysis of Chinese listed companies spanning the years 2013–2022, this study explores the relationship between ESG ratings and firm-level innovation. The findings suggest that enhanced ESG performance exerts a positive influence on corporate innovation. Additionally, the scale of the enterprise emerges as a pivotal factor in mediating the interplay between ESG performance and innovation outcomes. Notably, there's no discernible disparity in how ESG performance affects the innovation capabilities of both profitable and unprofitable enterprises. Furthermore, supply chain resilience is found to foster corporate innovation, but its impact varies depending on whether the enterprise is profitable or not.