Research on the Impact of ESG Performance, Green Innovation Investment and Stock Price Crash Risk

With the development of national sustainable policies, the ESG performance of enterprises has increasingly attracted scholarly attention, leading to extensive research in the area. The study empirically examines the link between corporate ESG monetization and stock price crash risk by analyzing data from firms that are publicly traded on the A-share market in Shanghai and Shenzhen spanning 2011 to 2022. The results indicate that is negatively correlated between the monetization of corporate ESG efforts and the probability of stock price crashes. Furthermore, through mechanism analysis, it is revealed that robust ESG performance mitigates the chances of notable declines in stock prices not only via investments in green innovation but also by alleviating financing constraints. In terms of heterogeneity testing, the influence of ESG performance on the probability of stock price crashes appears to be somewhat more conspicuous for state-owned enterprises (SOEs) in comparison to non-state-owned enterprises and analysts' focus.