Can ESG rating help shape enterprises' new-quality productivity? Evidence from China

As an advanced form of productive forces, new-quality productivity serves as a crucial engine for promoting high-quality development. Against the background of the exogenous shock caused by SynTao Green's first public release of the ESG rating of listed companies, this paper investigates the impact of ESG ratings on the new-quality productivity of Chinese companies. We employ the multiple-period difference-in-differences (DID) model in this study. The main findings are as follows: ESG ratings can significantly promote the new-quality productivity of enterprises. This conclusion remains valid after a series of robustness tests. The mechanism tests indicate that ESG rating new-quality productivity of enterprises by enhancing corporate innovation capacities and green productivity. Furthermore, the effect of ESG rating on new-quality productivity varies in accordance with different characteristics of enterprises, such as their lifecycle, new-quality productivity performance, degree of digital transformation, firm size, and market competition levels. In conclusion, we propose several policy implications.