Recently, the collaborative paper Study on ESG Performance, Internal and External Reputation, and Survival Performance of Overseas Subsidiaries by Professor Yu Miaojie (President of Liaoning University), Postdoctoral Fellow Lu Weixiao (from the Institute of International Trade and Economic Cooperation, Ministry of Commerce, Liaoning University), and Lecturer Yuan Wenhua (Yangzhou University) has been officially accepted by Journal of International Trade Issues.
Abstract of the Paper
Based on the principal-agent framework, this paper constructs a theoretical model of how ESG performance affects the survival performance of overseas subsidiaries, from the dual perspectives of the internal and external reputation derived from ESG performance. It empirically tests the impact of ESG performance on the survival performance of overseas subsidiaries using data from Chinese A-share listed companies spanning 2009 to 2020.The study finds that improving ESG performance can effectively enhance the survival performance of overseas subsidiaries. Heterogeneity analysis reveals that the optimization effect of ESG performance improvement on survival performance is more pronounced under the following conditions:The parent company is a private enterprise, or its senior management team has overseas experience;The overseas subsidiary is located in a host country with a poor business environment, or the subsidiary itself is in the growth stage.
Mechanism analysis indicates that the improvement of ESG performance effectively enhances the survival performance of overseas subsidiaries through two key pathways: strengthening the reputation of both the parent company and the overseas subsidiary, and increasing the profit-sharing ratio of the overseas subsidiary.This study not only provides academic support for enterprises to improve ESG performance and thereby facilitate the stable and long-term development of their overseas investments, but also offers policy references for government departments to optimize corporate ESG rating systems and performance evaluation standards for internationalization strategies.
Introduction to the Journal
Founded in 1975, Journal of International Trade Issues is supervised by the Ministry of Education of the People’s Republic of China and sponsored by the University of International Business and Economics.The journal is a source journal of the Chinese Social Sciences Citation Index (CSSCI), a core journal in the fields of trade economics and world economics, one of the first batch of journals funded by the National Social Science Fund of China, and the official publication of the China Industrial Economics Association.Permanent columns of Journal of International Trade Issues include:Economic and Trade Forum,Business Strategy,Global Value Chains,Themed Column on the “Belt and Road” Initiative,International Investment and Multinational Operations,Trade and Environment,Trade in ServicesTrade BarriersInternational Finance,International Economic Law,Academic Frontiers.
Author Profiles
Yu Miaojie serves as Deputy Secretary of the Party Committee and President of Liaoning University.His academic and social affiliations include: Fellow of the International Economic Association (IEA); Changjiang Distinguished Professor; Recipient of the National Science Fund for Distinguished Young Scholars; Beijing Outstanding Young Scientist; Boya Distinguished Professor of Peking University; Member of the 14th National People's Congress; Specially-invited Ombudsman of the National Supervisory Commission; and Associate Editor of Economic Journal (a top international academic journal in economics). He is entitled to the Special Government Allowance of the State Council.As an economist, he has authored papers listed in the top 1% of highly cited papers in the global economics and management field. Notably, he is the only Chinese scholar to have won the "Royal Economic Society Prize" to date.
Lu Weixiao is a Lecturer at the School of Business, Yangzhou University. He holds a PhD in Economics from Nankai University and is currently a Postdoctoral Researcher at the Institute of International Trade and Economic Cooperation (affiliated with the Ministry of Commerce), Liaoning University.His research focuses on international trade and cross-border investment. He has published a number of academic papers in journals including Economic Science, International Economics and Trade Research, Asia-Pacific Economic Review, Journal of World Economy, and Journal of Liaoning University (Philosophy and Social Sciences Edition).
Yuan Wenhua is a Lecturer at the School of Business, Yangzhou University. She holds a PhD in Economics from the University of International Business and Economics (UIBE) and was the recipient of the "2025 UIBE University-Level Excellent Doctoral Dissertation Award".Her research focuses on ESG (Environmental, Social, and Governance) and cross-border investment. She has published a number of academic papers in journals including Economic Science, Journal of World Economy, and Journal of Environmental Management.
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