Legal environment, social trust, and ESG Performance of enterprises: A case study of a-share listed companies on the Shanghai and Shenzhen stock exchanges in China from 2010 to 2019

Under the background of implementing "carbon peak and carbon neutrality" targets, the ESG performance of enterprises has attracted the attention from the public. This study selects Chinese listed companies from 2010 to 2019 as samples, constructs an ESG evaluation system using the entropy method and AHP method, and investigates the impact of the legal environment on corporate ESG performance and the moderating role of social trust through multiple regression models. The study finds that a well-developed legal environment promotes corporate ESG performance, and the synergistic effect of social trust and the legal environment significantly enhances ESG performance. Further research reveals that the positive effect of the legal system on corporate ESG performance is stronger in resource-based cities and economically underdeveloped regions. Industry heterogeneity analysis further shows that companies in resource-based and traditional heavy industries experience more significant improvements in ESG performance under the influence of the legal environment. The findings enrich the research on the factors influencing corporate ESG performance and provide strategic guidance for promoting corporate sustainable development.