An Empirical Analysis Of The Impact Of ESG Performance Of Shanghai And Shenzhen A-share Listed Companies On Financial Performance

Low-carbon economy and green economy are the development goals pursued by China’s economy and society in the 21 st century.The "Fourteenth Five-Year Plan" and "Double-Carbon" goals also put forward higher requirements for China’s ecological construction and green transformation.Enterprises actively protect the environment and increase investment in environmental protection have become the basic requirements of modern enterprises;A series of malignant events caused by the lack of social responsibility and the ambiguity of social morality of some enterprises show the importance and necessity of enterprises to actively assume social responsibility.How to improve the financial performance of enterprises while protecting the environment and assuming social responsibilities has been a difficult problem for government departments and enterprises.In this context,the ESG concept came into being.The emergence of the ESG concept provides a new way for Chinese enterprises and government departments to achieve a win-win situation for enterprises and society.Therefore,it is of great significance for Chinese enterprises and governments to study the relationship between enterprise ESG performance and enterprise financial performance.This article first used the literature research method to read and sort out the relationship between ESG concept related topics and corporate financial performance,and deeply understood the connotation of ESG concept.And it summarizes the research results of domestic and foreign scholars on the overall ESG performance and financial performance of enterprises,and clarifies the research ideas and methods of this article.Then,using the empirical analysis method,this paper selects the annual financial data of Shanghai and Shenzhen A-shares from 2012 to 2020 and the ESG rating rating of China Securities,constructs a fixed effect model,and Empirical testing of the impact of corporate ESG performance on corporate financial performance.Using the comparative analysis method,the differences are analyzed based on different ownership characteristics and different industry characteristics of enterprises.Based on corporate innovation and corporate financing constraints,a mediator effect model was constructed to examine the partial impact paths of corporate ESG performance on corporate financial performance.Finally,a robustness test was conducted,and the following conclusions were reached:(1)The improvement of ESG performance of enterprises can significantly improve their financial performance.(2)The improvement of ESG performance of enterprises also has a significant improvement effect on the financial performance of enterprises with a lag of one period,and there is a lag effect.(3)Compared with state-owned enterprises,the improvement of ESG performance of non-state-owned enterprises has a more obvious effect on their financial performance.(4)Compared with non-heavypolluted enterprises,the improvement of ESG performance of heavy-polluted enterprises is more significant for the improvement of their financial performance.(5)By improving their ESG performance,enterprises can alleviate their financing constraints,thus promoting the improvement of their financial performance.(6)Enterprises improve their ESG performance,enhance their innovation ability,and thus promote the improvement of their financial performance.Finally,according to the research conclusions,some suggestions are put forward for enterprises,governments and investors respectively,and the research limitations and prospects of this paper are described.