Green Development Governance and Corporate Value

This study examines the impact of green development governance on corporate value using a panel dataset of Chinese listed companies from 2009 to 2023. Grounded in resource dependence and stakeholder theories, ESG scores are employed to measure green development governance, and return on assets (ROA) serves as the proxy for corporate value. A two-way fixed effects model and a mediation model are applied to explore both direct and indirect effects. The findings reveal that: (1) stronger green development governance significantly enhances corporate value, particularly among large and non-state-owned firms; and (2) corporate efficiency, measured by total asset turnover, partially mediates this relationship, supporting the mechanism that governance improvements drive efficiency and, in turn, value creation. These results provide theoretical and practical implications for firms, policymakers, and investors seeking to foster green transformation and sustainable growth in emerging markets.