Corporate ESG Performance and Export Product Quality: Evidence from Chinese Listed Companies

While it is a global imperative that firms should achieve superior environmental, social, and governance (ESG) performance, the specific impact of ESG on export product quality remains under-explored. Based on stakeholder theory and principal–agent theory, this paper utilizes a sample of Chinese listed companies and the High-Dimensional Fixed Effects (HDFE) Model to empirically examine the impact and underlying mechanisms of ESG performance on export product quality. The results indicate a U-shaped relationship between ESG performance and export product quality, a non-linear correlation that has received limited attention in the previous literature. This U-shaped relationship is more pronounced among state-owned enterprises (SOEs), firms producing non-high-tech products, and those in heavy-polluting industries. Mechanism analysis reveals that ESG performance influences export product quality primarily through three channels: innovation levels, total factor productivity (TFP), and supply chain stability. By unveiling these non-linear dynamics and their underlying pathways, this study provides a novel theoretical framework and critical empirical evidence that reconcile conflicting views on ESG effects. These findings offer important insights for policymakers and exporters seeking to align ESG practices with export objectives, thereby contributing to more sustainable and high-quality development of foreign trade in China and beyond.