Abstract
The study examines the determinants of green performance among China's chemical enterprises from 2018 to 2023, with an emphasis on the mediating role of Environmental, Social, and Governance (ESG) practices. Drawing on panel data of 478 listed chemical firms, a two-way fixed effects model was employed to examine how firm characteristics, namely enterprise size, type, and age, affect green performance. The results reveal that larger and more mature enterprises exhibit significantly higher levels of green performance, supported by economies of scale, technological advancements, and effective governance. Moreover, ESG practices act as a critical mediating mechanism that strengthens the positive relationship between enterprise characteristics and green performance. Robustness and endogeneity tests confirm the stability of these findings. Heterogeneity analysis further indicates that the positive effects are more pronounced in state-owned enterprises, firms in central and western China, and those classified as high-tech or "specialized, refined, unique, and new" enterprises. The research underscores that organizational capability and ESG integration are essential drivers of sustainable transformation in the chemical industry. These findings offer theoretical and empirical guidance for policymakers to develop differentiated regulatory measures and for enterprises to enhance their green competitiveness in alignment with China's "dual carbon" goals.
