Lately, there is a progressive assimilation of sustainable and green development principles into the collective conscience of individuals. Companies have received considerable attention from all sectors of life when it comes to the environment, society and governance (ESG). This study uses a bidirectional fixed effects model to investigate the influence and the mechanism of green innovation on company ESG information, using a research sample composed of data from the A-share listed companies in China spanning the period from 2011 to 2021. The findings indicated that green innovation exerted a substantial positive influence on ESG information disclosure, and the effect was more substantial, especially in mature and declining companies. Financing constraints and analysts’ attention played a mediating role between green innovation and ESG information disclosure. The results of heterogeneity analysis showed that green innovation played a more significant role in promoting ESG information disclosure among state-owned companies, large-scale companies, manufacturing companies and heavy pollution companies. Furthermore, implementing green development policies had facilitated the reinforcement of the promotion impact of ESG information disclosure through green innovation. Additionally, the instrumental variable method was employed to conduct a robustness test. This study enhances the understanding of the theoretical framework about green innovation and the disclosure of ESG information, and offers valuable insights for advancing the sustainable development of companies.

1. Ai, H., Hu, S., Li, K., et al. (2020) Environmental regulation, total factor productivity, and enterprise duration: Evidence from China. Business Strategy and the Environment, 29(6), 2284–2296. https://doi.org/10.1002/bse.2502
2. Bissoondoyal-Bheenick, E., Brooks, R., R., & Do, H. X. (2023). ESG and firm performance: The role of size and media channels. Economic Modelling, 121, 106203. https://doi.org/10.1016/j.econmod.2023.106203
3. Bi, D. T., Huang, W. X., Wang, L., et al. (2023). How does the development of urban digital economy affect the ESG performance of enterprises—A green and high-quality development path for urban enterprise collaboration. Studies in Science of Science, 41, 1–22. https://doi.org/10.16192/j.cnki.1003-2053.20230404.002
4. Barros, V., Matos, P. V., Sarmento, J. M., et al. (2022). M&A activity as a driver for better ESG performance. Technological Forecasting and Social Change, 175, 121338. https://doi.org/10.1016/j.techfore.2021.121338
5. Bhandari, A., & Javakhadze, D. (2017). Corporate social responsibility and capital allocation efficiency. Journal of Corporate Finance, 43, 354–377. https://doi.org/10.1016/j.jcorpfin.2017.01.012
6. Buchanan, B., Cao, C. X., & Chen, C. (2018). Corporate social responsibility, firm value, and influential institutional ownership. Journal of Corporate Finance, 52, 73–95. https://doi.org/10.1016/j.jcorpfin.2018.07.004
7. Cai, H. J., & Zhou, Z. Y. (2022) Market oriented environmental regulation policies and the quality of ESG information disclosure. Finance and Accounting Monthly, 43, 62–70. https://doi.org/10.19641/j.cnki.42-1290/f.2022.24.008
8. Chen, Y. P., Zhuo, Z., Huang, Z., & Li, W. (2022). Environmental regulation and ESG of SMEs in China: Porter hypothesis re-tested. Science of The Total Environment, 850, 157967. https://doi.org/10.1016/j.scitotenv.2022.157967
9. Chen, Y., Yang, S., & Li, Q. (2022). How does the development of digital financial inclusion affect the total factor productivity of listed companies? Evidence from China. Finance Research Letters, 47, 102956. https://doi.org/10.1016/j.frl.2022.102956
10. Dickinson, V. (2011). Cash Flow Patterns as a Proxy for Firm Life Cycle. The Accounting Review, 86(6), 1969–1994. https://doi.org/10.2308/accr-10130
11. Fang, M., Nie, H., & Shen, X. (2023). Can enterprise digitization improve ESG performance? Economic Modelling, 118, 106101. https://doi.org/10.1016/j.econmod.2022.106101
12. Ge, J. (2019). Green Technology Innovation, Carbon Accounting Information Disclosure, and Financing Constraints for Heavy Polluting Enterprises. Communication of Finance and Accounting, 39(24), 95–100. https://doi.org/10.16144/j.cnki.issn1002-8072.2019.24.019
13. Gu, H. F., & Zhai, L. Y. (2021) Stickiness of executive compensation, Assumption of risk and enterprise investment efficiency—the moderating role of managers’ power and financing constraints. Securities Market Herald, 31(01), 33–43. https://doi.org/j.cnki.1005-1589/2021.1.10
14. Huang, S. Z. (2021). Three Theoretical Pillars Supporting ESG. Finance and Accounting Monthly, 42(19), 3–10. https://doi.org/10.19641/j.cnki.42-1290/f.2021.19.001
15. Huang, J. W., & Li, Y. H. (2017). Green Innovation and Performance: The View of Organizational Capability and Social Reciprocity. Journal of Business Ethics, 145(2), 309–324. https://doi.org/10.1007/s10551-015-2903-y
16. He, F., Du, H., & Yu, B. (2022). Corporate ESG performance and manager misconduct: Evidence from China. International Review of Financial Analysis, 82, 102201. https://doi.org/10.1016/j.irfa.2022.102201
17. Huang, S., Lin, H., Zhou, Y., et al. (2022). The Influence of the Policy of Replacing Environmental Protection Fees with Taxes on Enterprise Green Innovation—Evidence from China’s Heavily Polluting Industries. Sustainability, 14(11), 6850. https://doi.org/10.3390/su14116850
18. Huang, D., & Chen, G. (2022). Can the technologically advanced policy achieve green innovation of small and medium-sized enterprises?—The case of China. Frontiers in Environmental Science, 10. https://doi.org/10.3389/fenvs.2022.964857
19. Jiang, Q. B., & Tan, Q. M. (2020) Research on the Non Dynamic Threshold Effect of Government Innovation Subsidies on Enterprise Innovation—Based on the Financing Constraints of Listed Companies on the Growth Enterprise Market. Economic Survey, 37(06), 97–105. https://doi.org/10.15931/j.cnki.1006-1096.20201011.002
20. Khan, M. A. (2022). ESG disclosure and Firm performance: A bibliometric and meta analysis. Research in International Business and Finance, 61, 101668. https://doi.org/10.1016/j.ribaf.2022.101668
21. Liu, M., Luo, X., & Lu, W. Z. (2023). Public perceptions of environmental, social, and governance (ESG) based on social media data: Evidence from China. Journal of Cleaner Production, 387, 135840. https://doi.org/10.1016/j.jclepro.2022.135840
22. Li, J., Lian, G., & Xu, A. (2023). How do ESG affect the spillover of green innovation among peer firms? Mechanism discussion and performance study. Journal of Business Research, 158, 113648. https://doi.org/10.1016/j.jbusres.2023.113648
23. Li, D., Huang, M., Ren, S., et al. (2018). Environmental Legitimacy, Green Innovation, and Corporate Carbon Disclosure: Evidence from CDP China 100. Journal of Business Ethics, 150(4), 1089–1104. https://doi.org/10.1007/s10551-016-3187-6
24. Li, Q. Y., & Xiao, Z. H. (2020) Heterogeneous Environmental Regulation Tools and Incentives for Green Innovation in Enterprises—Evidence from Green Patents of Listed Companies. Economic Research Journal, 66, 192–208.
25. Li, Y. L., & Tan, M. Z. (2019) Transparency of Accounting Information and Enterprise Value—Retesting Based on Life Cycle Theory. Accounting Research, 40, 27–33. https://doi.org/cnki:sun:kjyj.0.2019-10-005
26. Li, C. T., Zhao, Y., Xu, X., et al. (2016) Press the gourd to float: Analyst tracking and earnings management path selection. Journal of Financial Research, 59, 144–157. https://doi.org/cnki:sun:jryj.0.2016-04-010
27. Li, J. L., Yang, Z., Chen, J., et al. (2021) Research on the Mechanism of ESG Promoting Enterprise Performance - Based on the Perspective of Enterprise Innovation. Science of Science and Management of S. & T, 42, 71–89.
28. Lin, B., & Ma, R. (2022). How does digital finance influence green technology innovation in China? Evidence from the financing constraints perspective. Journal of Environmental Management, 320, 115833. https://doi.org/10.1016/j.jenvman.2022.115833
29. Lin, H., & Li, T. R. (2023). Green Development, Financial Support, and Enterprise Value—Empirical Testing Based on ESG of Listed Companies. Modern Economic Research, 42, 28–44. https://doi.org/10.13891/j.cnki.mer.2023.02.009
30. Mensah, C. N., Long, X., Dauda, L., et al. (2019) Technological innovation and green growth in the Organization for Economic Cooperation and Development economies. Journal of Cleaner Production, 240, 118204. https://doi.org/10.1016/j.jclepro.2019.118204
31. Pan, Y. K., & Guo, M. M. (2023). ESG Performance of Enterprises under Air Pollution Pressure. Journal of Quantitative & Technological Economics. 40(07), 112–132. https://doi.10.13653/j.cnki.jqte.20230517.003
32. Sun, Y. M., Mei, X., & Chen, S. M. (2021). Research on the spatiotemporal pattern and driving factors of green technology innovation in the Yangtze River Delta urban agglomeration. Jiang-huai Tribune, 64, 13–22+61. https://doi.org/10.16064/j.cnki.cn34-1003/g0.2021.01.002
33. Song, P., Chen, Z., & Song, D. (2021). Can Green Technology Innovation Drive the Rise of GVC in China’s Manufacturing Industry: An Empirical Test Based on WIOD Data. Collected Essays on Finance and Economics, 37, 1–14. https://doi.org/10.13762/j.cnki.cjlc.20210118.002
34. Shu, W., & Zhang, M. (2020). Corporate Governance: New Trends and Implications. Modernization of Management, 40, 76–80. https://doi.org/10.19634/j.cnki.11-1403/c.2020.02.018
35. Ullah, F., Jiang, P., Elamer, A. A., et al. (2022). Environmental performance and corporate innovation in China: The moderating impact of firm ownership. Technological Forecasting and Social Change, 184, 121990. https://doi.org/10.1016/j.techfore.2022.121990
36. Wang, W., Sun, Z., Wang, W., et al. (2023). The impact of environmental uncertainty on ESG performance: Emotional vs. rational. Journal of Cleaner Production, 397, 136528. https://doi.org/10.1016/j.jclepro.2023.136528
37. Wang, L., Zeng, T., & Li, C. (2022). Behavior decision of top management team and enterprise green technology innovation. Journal of Cleaner Production, 367, 133120. https://doi.org/10.1016/j.jclepro.2022.133120
38. Wang, T., Wen, C. Y., & Seng, J. L. (2014). The association between the mandatory adoption of XBRL and the performance of listed state-owned enterprises and non-state-owned enterprises in China. Information & Management, 51(3), 336–346. https://doi.org/10.1016/j.im.2014.02.006
39. Wen, Z., & Ye, B. (2014). Analyses of Mediating Effects: The Development of Methods and Models. Advances in Psychological Science, 22(5), 731. https://doi.org/10.3724/sp.j.1042.2014.00731
40. Wang, L., Chen, C., & Zhu, B. (2023). Earnings pressure, external supervision, and corporate environmental protection investment: Comparison between heavy-polluting and non-heavy-polluting industries. Journal of Cleaner Production, 385, 135648. https://doi.org/10.1016/j.jclepro.2022.135648
41. Wang, B., & Yang, M. J. (2022) Research on the impact mechanism of ESG performance on enterprise value - Empirical evidence from China’s A-share listed companies. Soft Science, 36, 78–84. https://doi.org/10.13956/j.ss.1001-8409.2022.06.11
42. Wan, L. Y., Zha, Y. Y., & Rao, J. (2020) Financialization of real enterprises and enterprise innovation output—a moderated Mesomeric effect. Accounting Research, 41, 98–111. https://doi.org/10.1016/j.jclepro.2022.135648
43. Xie, S. L., & Zhou, B. L. (2022). ESG performance, investors’ attention and the quality of corporate information disclosure—an analysis based on Text mining of annual reports. The Chinese Certified Public Accountant, 34, 54–61. https://doi.org/10.16292/j.cnki.issn1009-6345.2022.10.010
44. Xie, X. M., & Zhu, Q. W. (2021) How can green innovation practices in enterprises solve the problem of “harmonious coexistence”. Journal of Management World, 37, 128–149+9. https://doi.org/10.19744/j.cnki.11-1235/f.2021.0009
45. Xie, X., Huo, J., & Zou, H. (2019). Green process innovation, green product innovation, and corporate financial performance: A content analysis method. Journal of Business Research, 101, 697–706. https://doi.org/10.1016/j.jbusres.2019.01.010
46. Xu, X. Y. (2019). Unexpected monetary compensation, green innovation investment, and disclosure of corporate environmental accounting information by management. Communication of Finance and Accounting, 40, 48–52. https://doi.org/10.16144/j.cnki.issn1002-8072.2019.27.008
47. Xu, P., Xu, X., & Bai, G. (2022). Corporate environmental responsibility, CEO’s tenure and innovation legitimacy: Evidence from Chinese listed companies. Technology in Society, 70, 102056. https://doi.org/10.1016/j.techsoc.2022.102056
48. Xu, Y., Li, S., Zhou, X., et al. (2022). How environmental regulations affect the development of green finance: Recent evidence from polluting firms in China. Renewable Energy, 189, 917–926. https://doi.org/10.1016/j.renene.2022.03.020
49. Xu, J., & Cui, J. (2020). Low-carbon cities and green technology innovation of enterprises. China Ind Econ, 12, 178–196. https://doi.org/10.19581/j.cnki.ciejournal.2020.12.008
50. Yu, W., Ramanathan, R., & Nath, P. (2016) Environmental pressures and performance: An analysis of the roles of environmental innovation strategy and marketing capability. Technological Forecasting and Social Change, 117, 160–169. https://doi.org/10.1016/j.techfore.2016.12.005
51. Yuan, X., Li, Z., Xu, J., et al. (2022). ESG disclosure and corporate financial irregularities—Evidence from Chinese listed firms. Journal of Cleaner Production, 332, 129992. https://doi.org/10.1016/j.jclepro.2021.129992
52. Yu, Z., Shen, Y., & Jiang, S. (2022). The effects of corporate governance uncertainty on state-owned enterprises’ green innovation in China: Perspective from the participation of non-state-owned shareholders. Energy Economics, 115, 106402. https://doi.org/10.1016/j.renene.2022.03.020
53. Zheng, J. M., & Xu, C. X. (2018). Has the “New Environmental Protection Law” Improved the Quality of Enterprise Environmental Information Disclosure—A quasi Natural experiment. Securities Market Herald, 28, 4–11+28. https://doi.org/cnki:sun:zqdb.0.2018-08-003
54. Zhai, Y., Cai, Z., Lin, H., et al. (2022). Does better environmental, social, and governance induce better corporate green innovation: The mediating role of financing constraints. Corporate Social Responsibility and Environmental Management, 29(5), 1513–1526. https://doi.org/10.1002/csr.2288
55. Zhang, Y., Xing, C., & Wang, Y. (2020). Does green innovation mitigate financing constraints? Evidence from China’s private enterprises. Journal of Cleaner Production, 264, 121698. https://doi.org/10.1016/j.jclepro.2020.121698
56. Zhang, J. S., & Lu, S. S. (2022). The influence of green credit policy on enterprise innovation performance. Stat Decis, 7, 179–183. https://doi.org/10.13546/j.cnki.tjyjc.2022.07.036