The Impact of Corporate ESG Performance on Employee Employment: An Empirical Study Based on the Two-way Fixed Effects Model

DOI

10.2991/978-94-6239-787-3_48How to use a DOI?

Keywords

ESG Performance; Number of employees; Two-way Fixed Effects Model; Human Resource

Abstract

Amid China’s coordinated advancement of high-quality and sustainable development, how environmental, social, and governance (ESG) performance influences corporate labor hiring decisions has become a key topic in employment stability research. Using panel data of A-share listed firms from 2009 to 2024, this study employs a two-way fixed-effects model to systematically examine the impact of ESG performance on the number employees (EN) and its heterogeneous characteristics. Findings reveal that ESG performance significantly promotes employment growth, and this conclusion remains robust after controlling for firm-specific and time-specific fixed effects. This confirms that ESG practices positively drive corporate employment scale by alleviating financing constraints, enhancing production efficiency, and increasing talent attractiveness. Accordingly, this paper proposes improving ESG disclosure and incentive systems that take employment effects into account, establishing linkage mechanisms between ESG, green finance, and industry access, and strengthening market-based incentives for ESG employer branding to build a long-term mechanism fostering a virtuous cycle between sustainable governance and employment stability.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Yijiang Jiang
PY  - 2026
DA  - 2026/09/29
TI  - The Impact of Corporate ESG Performance on Employee Employment: An Empirical Study Based on the Two-way Fixed Effects Model
BT  - Proceedings of the 2026 4th International Conference on Management Innovation and Economy Development (MIED 2026)
PB  - Atlantis Press
SP  - 487
EP  - 494
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-787-3_48
DO  - 10.2991/978-94-6239-787-3_48
ID  - Jiang2026
ER  -