Abstract：Taking A-share listed firms in Shanghai and Shenzhen from 2011 to 2022 as samples, this paper studies the effect of ESG performance on corporate fraud. The results show ESG performance can inhibit fraud occurrence, reduce fraud frequency, and effectively restrain fraud. The mechanism test shows that ESG performance has changed the five drivers of fraud risk factor theory through three paths, and constrained the fraud. The first is the resource support path, which reduces financing constraints in funds and improves revenue in business. The second is the multi-dimensional governance path, which increases analysts and investors attention in external governance, inhibits executives self-interested behavior and alleviates information asymmetry in internal governance. The third is cost deterrence path, which increases revenue cost in the economic side, and increases reputation cost in the non-economic side. Expansive analysis finds that fraud constraint effect of ESG performance is more significant in firms with low information transparency, low environmental uncertainty and better market and legal environment. Moreover, improving ESG performance can also have an after-the-fact remedial effect after the fraud, reducing delisting probability and bankruptcy risk in the future.
李清，陈琳. ESG表现对企业违规行为的影响研究[J]. 管理学报, 2025, 22(11): 2137-.
LI Qing，CHEN Lin. Impact Research of ESG Performance on Corporate Fraud. Chinese Journal of Management, 2025, 22(11): 2137-.
