The Relationship Between ESG Rating And Corporate Value

Existing research mainly evaluates the value of listed companies from factors such as corporate profitability,financial status,and industry development.ESG,on the other hand,incorporates the three elements of environmental,social responsibility and corporate governance into the scope of enterprise value assessment,which can more comprehensively assess the positive and negative external effects and sustainable management capabilities of an enterprise.With the introduction of China’s "dual carbon" goal and the supply-side structural reform,relevant departments have made new requirements for the disclosure of listed companies’ environmental,social responsibility and corporate governance,and investors are gradually changing their investment standards in the past.Take ESG metrics into consideration.Therefore,studying the relationship between ESG ratings and corporate value can not only provide a reference for corporate governance,but also has great reference value for investors.This paper first describes the background of ESG rating,and conducts a survey and analysis of relevant literature.On this basis,select all A-share listed companies from2017 to 2021,use static panel model to analyze the correlation between ESG rating and company value,and compare the impact of Syn Tao Green Finance ESG rating and Huazheng ESG rating on company value.It also distinguishes between manufacturing and non-manufacturing industries,different company sizes,different listing periods,the degree of equity distribution,and the correlation between the value of companies in different listed sectors and ESG ratings.After using the median regression method,the substitution variable method and the selected instrument variable method to conduct robustness tests,the final conclusions are as follows:(1)The overall performance of corporate environmental responsibility,social responsibility,and corporate governance has a positive impact on corporate value.to influence.(2)Compared with the Syn Tao Green Finance rating index,the ESG rating index of Huazheng has a more significant correlation between the ESG level and the enterprise value.(3)The relationship between ESG rating and company value has heterogeneous results under different company scales,listing periods,degrees of equity distribution and listing sectors.Compared with small-scale companies,ESG ratings have a more significant effect on the company’s value enhancement.The positive effect of ESG rating on company value is more obvious for companies with a short listing period.The positive effect of ESG rating on enterprise value of companies with diversified equity is more significant.The main board market has a more significant positive effect of ESG ratings on company value than the Chi Next market and the Science and Technology Innovation Board market.Therefore,this paper suggests that government departments improve the company’s ESG information disclosure system,establish and improve the corporate information system,and improve the long-term mechanism of ESG rating;listed companies focus on sustainable development capabilities,increase investment in green innovation,take the initiative to assume social responsibilities and improve corporate governance mechanisms.