Corporate ESG Performance, Corporate Green Innovation Level and Stock Price Synchronicity

Abstract

Corporate ESG ratings are crucial for China's enterprises pursuing green transformation and the "Dual Carbon" goal. Using a sample of China's A-share listed companies from 2009 to 2022, this study investigates the impact of ESG performance on stock price synchronization. It also explores the mediating role of substantive green innovation. Results show that good ESG performance positively influences stock price synchronization. Specifically, ESG performance promotes substantive green innovation, which enhances stock price synchronization. Additionally, the study finds significant effects in the eastern region and high-tech industries. This research supports firms in improving ESG performance and engaging in green innovation, contributing to stock price stability.