Date of Award

1-28-2026

Thesis Type

Masters

Document Type

Dissertation

Divisions

Faculty of Business and Economics

Department

Department of Accounting

Institution

Universiti Malaya

Abstract

This study examines the relationship between Environmental, Social, and Governance (ESG) performance and firm performance in China's A-share listed companies, with a particular focus on the moderating roles of firm size and the COVID-19 pandemic. Drawing on stakeholder theory, the research investigates whether ESG activities contribute positively to firm performance, and how this relationship varies with firm size and during crisis periods. The sample consists of Chinese A-share firms from 2019 to 2023, a period that includes the COVID-19 pandemic. After data processing, there are a total of 14,186 observations over the five-year period. Firm performance is measured using both accounting-based and market-based indicators. The study employs panel data regression models with fixed effects and 2SLS estimations, including interaction terms for ESG with firm size and COVID-19. The empirical results support all three hypotheses. First, ESG performance is found to have a significant and positive effect on both ROA and Tobin’s Q, suggesting that socially responsible firms tend to achieve better financial outcomes. Second, the interaction term between ESG and firm size is positively associated with firm performance, indicating that larger firms are more capable of translating ESG efforts into performance gains. Third, the positive moderating effect of COVID-19 implies that firms with stronger ESG practices were more resilient and better able to navigate the crisis. These findings offer theoretical contributions to stakeholder theory and practical implications for managers, investors, and policymakers aiming to enhance sustainable corporate strategies in emerging markets like China.

Initial

khm

Additional Information

Dissertation (M.A.) – Faculty of Business and Economics, Universiti Malaya, 2026.

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