Our Country Stock Market Investors ESG Investment Preference And Analysis Of Influence Factor

Since the 21 st century,increasing environmental problems have attracted the attention of all countries in the world.Therefore,the global economy has gradually begun to change to green development,and the concept of ESG has also begun to be promoted worldwide.Since the 1980 s,the reform and opening up have brought huge economic benefits to China.Low cost and resource consumption have become the main driving forces for China’s economic growth.The continuous economic growth has also brought negative impacts on the environment,with increasing problems such as resource waste and environmental pollution.Vigorously developing green economy is an important part of promoting high-quality economic development and ecological civilization construction in China.It is also an inevitable requirement for implementing the 14 th Five-Year Plan and achieving carbon neutrality by 2030 and 2060.And in the course of our economic development mode to the green transformation,the traditional concept of only paying attention to the enterprise’s financial performance mode began to change to ESG concept.The concept of ESG responsible investment is an investment concept that focuses on the environmental protection,social responsibility and corporate governance of the company.It is one of the main indicators to measure the sustainable development ability of the company,and can provide the power for the green transformation of our economic development.It has a very important practical significance.Based on this,this paper firstly combs the research status of domestic and foreign scholars on the measurement of ESG excess return,ESG investment preference and the influencing factors of ESG excess return,and then selects the data of Chinese A-share market companies from 2006 to 2019.The FF six-factor model and the fixed-e FFect model are established to test whether better ESG performance can bring higher excess returns,and thus to predict the proportion of di FFerent types of investors in the Chinese market.The research results of this paper show that:First,an enterprise’s ESG performance can predict the future fundamentals of the company.And the higher S component factor predicts the improvement of future profitability of enterprises.Second,companies with better ESG performance can bring higher excess returns,and social responsibility factors and corporate governance factors can bring higher excess returns.Third,the proportion of investors with different ESG preferences in the market will affect the overall market attitude towards ESGs,and thus determine the impact of listed companies’ ESG performance on stock prices and ultimately on the yield.In the empirical study of this paper,the conclusion that companies with good ESG performance can bring higher ESG excess returns indicates that the stock price of companies with good ESG performance is undervalued,thus generating a higher expected return rate..Thus,it can be inferred that investors who pay no attention to ESG occupy the majority in the market.Their investment objective is to maximize the return on investment and minimize the risk,and they do not consider the ESG factor in their investment process.Therefore,although stocks with high ESG scores can make profits,the prices of the stocks are not bid by these U-shaped investors,resulting in excess returns.Third,Investors’ ESG investment preference will be a FFected by changes in social norms and ESG investment guidance policies.After changes in social norms or implementation of ESG investment guidance policies,investors may change their behavior choices due to concerns or expectations of the society,increase their attention to ESG and enhance their preference for ESG investment..Based on the above conclusions,this paper puts forward the following policy suggestions: First,government departments should vigorously release relevant policies on ESG investment guidance,and improve investors’ attention and recognition of ESG responsibility concept through the implementation of these policies.Second,government departments should timely change social norms to improve investors’ ESG preference.Third,enterprises can take the initiative to build ESG and improve the company’s ESG management system.Secondly,enterprises can actively disclose the company’s ESG information and practice the concept of ESG.Fourth,individual and institutional investors should take the initiative to understand and take into account the concept of ESG investment,and promote enterprises to assume social responsibility.