Research On The Correlation Between ESG And Corporation Value Based On Enterprise Life Cycle

Negative news such as the "Long Life biological vaccine event"," Woman owner of Mercedes Benz protect her rights ",and "Ruixing coffee's financial fraud" have aroused widespread public concern about the Environmental,Social and Governance(ESG).However,the current voluntary disclosure of ESG information by domestic companies is low.In order to make the management authorities to further understand the economic consequences of ESG performance and consciously practice ESG philosophy,this article is dedicated to studying the correlation between ESG performance and corporate value based on the dynamic perspective of the corporate life cycle.First,this article uses the literature research method to organize the ESG related literature and makes theoretical analysis on the relationship between ESG and corporate value,based on which I put forward the research hypotheses.Next,I obtain the indicators weights by establishing ESG evaluation indicator system and building and ANP-CRITIC model so as to measure the corporate's ESG performance.Finally,I take A-share listed financial company from 2014 to 2018 as research samples,and do empirical research to figure out the correlation between ESG and corporate value,and the impact of corporate life cycle stages on them.Research results show that companies' ESG performance is always significantly positively correlated with enterprise value;that is,better ESG performance will help to enhance the enterprise value on any life cycle stage.And with the evolution of the life cycle,the influence of ESG on enterprise value shows an inverted U-shaped relationship,which means the influence is the strongest in the mature period,weaker in the recession period,and the weakest in the growth period.The main contributions of the article are as follows: firstly,tentatively establishing an ESG evaluation indicator system with high transparency and operability,which is more suitable for domestic enterprises;and innovatively constructing the ANP-CRITIC model,and comprehensively determining indicators' weights from both subjective and objective perspectives,which enhances the scientific and reliability of the ESG evaluation results.Secondly,analyzing the correlation between ESG and enterprise value from the dynamic perspective of the enterprise life cycle stage,which enriches the theoretical research of this field in China.