WHO GOVERNS ESG? THE IMPACT OF BOARD COMPOSITION AND OWNERSHIP STRUCTURE ON CORPORATE SUSTAINABILITY IN CHINA
Abstract
This study investigates how board characteristics and ownership structure influence corporate ESG performance in China’s listed companies. Using a balanced panel of 2,017 A-share firms listed on the Shanghai and Shenzhen Stock Exchanges from 2013 to 2023, it tests eight hypotheses related to board size, independence, CEO duality, meeting frequency, shareholding patterns, and state ownership. The results highlight that a higher proportion of independent directors, stronger management and chairman shareholding, and state-owned status significantly enhance ESG outcomes. In contrast, board size and CEO duality show no meaningful effect, while frequent board meetings correlate negatively with ESG performance. Ownership concentration by the largest shareholder appears neutral. These findings underscore the importance of aligning internal governance mechanisms with sustainability goals. The research offers practical insights for corporate leaders and policymakers aiming to strengthen ESG integration in China's evolving regulatory landscape.
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