The relationship between ESG factors and corporate performance is contentious, partly due to the literature's neglect of organizational demographic differences. Using data from 5,127 Chinese companies (2009-2022), we empirically analyze ESG's impact on corporate performance, factoring in the demographic heterogeneity of executive teams. Our findings indicate that although ESG indeed enhances corporate performance, its conversion effect is significantly influenced by the vertical dyads of gender and education within the top management teams (TMT). Additionally, our extended analysis reveals that these two types of vertical dyads exhibit distinct structural characteristics.

This paper examines the impact of green mergers and acquisitions (M&As) on firms’ transition to green exports. We develop a “Technology-Qualification” theoretical framework and conduct the empirical analysis using a matched dataset of Chinese listed manufacturing firms and customs records. The findings show that green M&As significantly promote firms’ green exports, and this effect remains consistent across a series of robustness test. Mechanism analysis reveals that green M&As promote green exports through two key channels: green innovation spillovers and green qualification spillovers. Further heterogeneity analysis indicates that the positive impact of green M&As on green exports is more pronounced among firms with stronger operational performance, weaker green foundations, and those involved in processing trade. In addition, green M&As not only stimulate green exports but also prevent the entry of polluting products and reduce the exit of green product, thereby driving a green-oriented dynamic restructuring of firms’ export structure. This paper offers micro-level insights into how firms can navigate the dual challenges of enhancing green production capabilities and overcoming barriers to green trade during their transition to green exports.

After the Chinese stock market dropped one-third in three weeks in June 2015, reportedly driven by lack of liquidity due to the fire sales by margin buyers, the government used hundreds of billions of dollars to purchase shares directly in the secondary market. We validate that margin trading is associated with the surge of stock market before the crisis. We find that firms in systemically important industries, firms with more political ties, and firms with high risk of falling into liquidity spiral are more likely to be rescued. More importantly, compared with matched un-rescued firms, rescued firms did not have higher stock return, but experienced higher volatility, lower liquidity, and lower price efficiency afterwards. Market quality even deteriorated further after the subsequent sale of the purchased shares. Last, rescued firms experience a modest decline in operational performance, while capital structure and investment remained the same. Our evidence suggest that a direct purchase rescue in the secondary stock market could generate serious unintended consequences.