You might think that business is all about making money, right? But it turns out that doing good can also boost your earnings. Let's talk about how Chinese companies benefit when they focus on ESG (Environmental, Social, and Governance) performance.

First off, what's ESG? It's like a report card for companies, showing how well they're taking care of the environment, treating their people, and running their business fairly. This isn't just about feeling good; it's about making more money.

Researchers looked at Chinese firms listed on stock exchanges from 2009 to 2022. They found that companies with top-notch ESG scores brought in more cash from their overseas operations. This isn't just a coincidence; it's a real, measurable effect.

Why does this happen? It's like companies are speaking a different language when they do well on ESG. They're telling customers and foreign countries, "Hey, we're responsible and trustworthy. " This helps break down barriers and makes it easier for these companies to do business abroad.

But wait, there's more! Great ESG performance also helps companies get around financing problems, avoid risks, and make their products more attractive. It's like a win-win situation.

Now, you might be thinking, "That's nice, but does it work for every kind of company? " Researchers found that it does. Companies that don't pollute much, aren't owned by the state, and are in growing or mature stages really benefit from good ESG scores. And guess what? The positive effect is even stronger in places where people care a lot about ESG stuff.

So, what's the big takeaway? Doing good can be good for business. This isn't just about feeling warm and fuzzy; it's about making smart business decisions.

How Good Deeds Boost Chinese Firms' Overseas Earnings

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