Green technology innovation, ESG ratings and corporate sustainable performance: Empirical evidence from listed semiconductor companies in China

Green technology innovation is a crucial measure for semiconductor companies to tackle sustainability challenges. Drawing upon empirical evidence from 105 listed companies within the semiconductor industry, we compare the differences in the roles of green and traditional technology innovations on firms' sustainable performance, concentrating on the operating mechanism and external circumstances of green technology innovation. Results show that both green and traditional technology innovation can enhance enterprises' sustainable performance, with the former exhibiting more significant effects. Meanwhile, green technology innovation indirectly enhances sustainable and environmental performance by improving environmental, social, and governance (ESG) ratings, without indirectly improving financial performance. Additionally, online public opinion attention moderates the effectiveness of green technology innovation in enhancing firms' sustainable and environmental performance. Finally, the varying levels of corporate sustainable performance can potentially impact the enhancement effect of green technology innovation. Our research offers theoretical backing for semiconductor companies to formulate eco-friendly transformation and sustainable development strategies. • Both green and traditional technology innovation can enhance sustainable performance. • The enhancement effect of green technology innovation is more significant. • ESG mediates the relationship between green technology innovation and firms' sustainable performance. • The moderating role of online public opinion is revealed. • The impact of green technology innovation varies by sustainable performance levels.