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The Impact of ESG on AI Firm Performance

Author(s)

Xin Lan

Affiliation(s)

School of Business, West China Normal University; China

Abstract

The ESG framework represents an innovative approach to integrating environmental stewardship, social accountability, and governance practices to foster sustainable growth within organizations, with artificial intelligence (AI) firms playing a pivotal role in advancing emerging sectors. Utilizing data from A-share AI companies spanning 2009 to 2023, this study empirically investigates how ESG performance influences the operational success of AI enterprises, incorporating the mediating factor of corporate financing constraints to elucidate the underlying mechanisms. Findings indicate that superior ESG performance is associated with enhanced corporate outcomes. Mechanism analysis reveals that robust ESG practices contribute to improved firm performance by mitigating financial limitations. Additional analysis demonstrates that the positive impact of ESG performance on AI firm outcomes is more pronounced in non-state-owned enterprises and those situated in eastern regions.

Keywords

ESG; Artificial Intelligence Firms; Firm Performance; Financing Constraints

References

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