Supply chain vertical common ownership and firm ESG performance
Abstract
Using supplier-customer relationships and shareholder data from Chinese listed firms, we construct a panel regression model to examine the impact of vertical common ownership (VCO) on corporate environmental, social, and governance (ESG) performance. Our results show that VCO significantly improves suppliers’ ESG outcomes, primarily through interest alignment and information sharing between vertically linked firms. This effect is particularly pronounced when supply chains experience frequent customer turnover or lack shared managerial ties.
Fields of Study & Subjects
Supply Chain and Inventory Management
Quality and Supply Management
Supply Chain Resilience and Risk Management
Publication details
- Journal / source
- Applied Economics Letters
- Publisher
- Informa UK Limited
- Pages
- 1–5
- Publication date
- 22 February 2026
- Language
- EN