Abstract
This thesis investigates three levels of determinants of environmental, social, and governance (ESG) performance of the subsidiaries of multinational companies operating in China. Informed by the theoretical framework that integrates the resource-based view and institutional theory, several hypotheses are developed regarding the impacts of parent company ESG performance, subsidiary characteristics, and the institutional environment in the host country. The dataset for analysis is constructed from multiple sources. The hypotheses are tested through ordinary least squares regression.The empirical results show that the parent company’s ESG performance and the subsidiary’s profitability positively influence subsidiary ESG performance. An analysis of moderating effects reveals that the distance between the home country and the host country weakens the effect of parent company ESG performance and strengthens the effect of subsidiary profitability. In addition, the empirical results show that the host country’s institutional environments play a limited role in influencing subsidiary ESG performance, with only low-carbon policies having a marginally positive impact. By examining multiple levels of determinants, this thesis provides a comprehensive analysis of the determinants of subsidiary ESG performance. The empirical results offer valuable insights for countries with significant foreign direct investment in the world and developing economies in particular.
| Date of Thesis submission | 2025 |
|---|---|
| Original language | English |
| Awarding Institution |
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| Sponsors | Australian Government Research Training Program Scholarship |
| Supervisor | Stella Huiying Wu (Supervisor) & Rada Massingham (Supervisor) |
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