Political connection and corporate ESG performance: Evidence from China

Congming Ding; Xuezhenzi Hu

doi:10.18559/ebr.2026.1.2293

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Political connection and corporate ESG performance: Evidence from China

Economics and Business Review

Volume 12 (2026): Issue 1 (April 2026)

By: Congming Ding and Xuezhenzi Hu

Open Access

|Apr 2026

Abstract

ESG has attracted widespread attention in China’s capital markets. This study investigates the impact of corporate executives’ political connections on firms’ ESG performance in China. Using panel data from A-share listed companies between 2009 and 2022, this study empirically tests whether politically connected executives influence ESG ratings. The results show a significant positive association between political connections and ESG scores. Mechanism analysis reveals that such connections improve ESG performance by enhancing media scrutiny, alleviating financing constraints, and increasing access to government subsidies. To address endogeneity concerns, we employ Two-Stage Least Squares (2SLS) regression, confirming the robustness of the findings. These results highlight the role of political capital in promoting sustainable corporate practices.

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Articles in this issue

DOI: https://doi.org/10.18559/ebr.2026.1.2293 | Journal eISSN: 2450-0097 | Journal ISSN: 2392-1641

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Language: English

Page range: 81 - 104

Submitted on: May 20, 2025

Accepted on: Jan 20, 2026

Published on: Apr 10, 2026

Published by: Poznań University of Economics and Business Press

In partnership with: Paradigm Publishing Services

Publication frequency: 4 issues per year

Keywords:

political connection,

ESG performance,

media monitoring,

financing constraints

Related subjects:

Business and economics,

Political economics,

Political economics, other,

Finance,

Mathematics and statistics for economists,

Econometrics

© 2026 Congming Ding, Xuezhenzi Hu, published by Poznań University of Economics and Business Press
This work is licensed under the Creative Commons Attribution 4.0 License.

Volume 12 (2026): Issue 1 (April 2026)