Dr. WANG Xiaowei, VivianVivianDr. WANG Xiaowei2026-03-312026-03-312026-04Finance Research Letters, 2026, vol. 95, article no. 109742.1544-61311544-6123http://hdl.handle.net/20.500.11861/27045This study examines the mechanisms and contextual factors through which corporate ESG performance influences the risk of stock price crashes, drawing on a sample of A-share listed companies in China. The results indicate that stronger ESG performance markedly lowers the likelihood of future stock price collapses. Analysis of the transmission channels shows that part of this risk-reduction effect is attributable to the facilitation of corporate intelligent transformation, which acts as a key mediating mechanism. Additionally, tests for moderating effects reveal that green innovation efficiency amplifies the inverse association between ESG performance and crash risk, implying that the mitigating role of ESG is stronger in companies with more efficient green innovation practices. Furthermore, heterogeneity tests reveal that the risk-reducing effect of ESG is particularly pronounced in enterprises that are not heavily polluting, those in highly competitive sectors, and firms with elevated investor sentiment. This study clarifies the underlying processes by which ESG performance affects stock price stability, offering empirical support to guide corporate efforts in refining ESG implementation and advancing digital transformation.enPeer Reviewed Journal Article10.1016/j.frl.2026.109742