Using a sample of 3,770 Chinese listed firms during the period 2015-2020, we find that afirm’s ESG rating is positively associated with its foreign sales ratios. The higher-ratedmultinational corporations (MNCs) have more foreign subsidiaries located in countries withstricter environmental and...

Using a unique subsidiary-level data of 3,863 Chinese nonfinancial firms from 2000 to 2019, we document that the multinational firms have 5.3% higher capital expenditures than the domestic firms relative to the average. We use China’s accession to WTO and additional instrumental variables for...