The impact of Social Security Fund shareholding on corporate ESG performance: evidence from China

This paper investigates the impact of Social Security Fund shareholding on corporate ESG performance and the potential mechanisms in China from 2012 to 2022. The results indicate that Social Security Fund shareholding significantly enhances corporate ESG performance by fostering green innovation, improving the quality of internal control, and promoting information disclosure. Further analyses show that the positive impact is more pronounced in heavily polluting companies, and after the outbreak of COVID-19 in early 2020. Our findings provide empirical support for acknowledging the guidance and governance role of the Social Security Fund and contribute to a deeper understanding of mechanisms that promote sustainable development.