Fulfillment of ESG Responsibilities and Firm Performance: A Zero-Sum Game or Mutually Beneficial

Focusing on the 311 Chinese firms listed in global markets from 2008 to 2019, based trade-off theory and resource slack theory, using panel vector autoregressive model threshold model, this paper explores impact of fulfilling ESG responsibility firm performance. The study reveals that short run, presents a “Substitution Effect,” whereas, long it “Promotional Effect.” On other hand, improvement performance has significantly positive fulfillment investment, even though there is strong hysteresis effect. Significant heterogeneity exists regarding relationship between negative with most affected being those small mid-sized Mainland China markets. In near term, positive, overseas large most. size factors affiliated tend cause differentiation effect inhibitory influence run. This could be used as guideline for social responsibilities nonprofit organizations.