The Impact of the National Civilized City Program on the Environmental, Social and Governance Performance of Enterprises: Evidence from China

The National Civilized City Program is an important governance championship for cities in China. Taking the National Civilized City Program as a quasi-natural experiment, based on the data of A-share listed companies in Shanghai and Shenzhen from 2009 to 2021, the multi-period double-difference method is used to investigate the impact, mechanism of action and heterogeneity of the National Civilized City Program on corporate ESG performance. It is found that the National Civilized City Program can significantly enhance corporate ESG performance, and this conclusion still holds after a series of robustness tests. The National Civilized City Program improves corporate ESG performance through two channels: strengthening environmental regulation and promoting the fulfillment of corporate responsibility towards employees. There is significant heterogeneity in terms of geography, firm ownership and pollution attributes in the impact of the National Civilized City Program on firms' ESG performance.