THE INTERPLAY OF ESG, GREEN INNOVATION AND WOMEN DIRECTORS: IMPLICATIONS FOR CHINESE LISTED COMPANIES

This study explores the complicated connection between ESG performance, green innovation, female directors, and corporate performance in Chinese listed companies. The research context stems from the national “dual carbon” goals and the evolving regulatory environment. The evidence suggests a positive correlation between ESG performance and corporate financial outcomes: effective ESG commitments generate long-term benefits through the “innovation compensation effect,” manifested in improved cost efficiency, enhanced reputation, and market access advantages. Green innovation serves as a core mediating variable, directly translating ESG commitments into quantifiable operational and market advantages, thereby driving companies to achieve superior financial and market performance. Additionally, the presence of female directors, particularly independent female directors, significantly strengthens this relationship. Their stronger risk oversight capabilities, diverse perspectives, stakeholder sensitivity, and ethical focus enhance corporate governance quality and the effectiveness of ESG strategy implementation, further amplifying the positive impact of ESG on corporate performance. The study's conclusions emphasize that the strategic necessity for achieving sustainable competitiveness in China lies in integrating ESG adoption, robust green innovation capabilities, and a diverse board of directors.