Research On The Influence Of Enterprise ESG Performance On Enterprise Value

The concept of ESG was first proposed by the United Nations in 2004,and E,S,and G are the initials of the three English words environment,society,and governance respectively.Since it was proposed,the concept of ESG and the investment concept it represents have developed rapidly and gradually become a hot topic for enterprises and investors.In 2020,China proposed that carbon dioxide emissions strive for the goal of "reaching a peak in 2030 and achieving neutrality in2060",and achieving the dual-carbon goal has put forward new requirements for enterprise ESG construction.However,due to the externality of enterprise ESG practice,enterprises are still doubtful about whether to strengthen ESG investment without policy requirements.At the same time,the high-quality development stage of China’s economy requires enterprises to pursue not only scale but also quality.Therefore,how to enhance enterprise value is also worth discussing.In this context,this paper studies the impact of ESG performance on firm value.On the basis of systematic review and research of relevant literature at home and abroad,this paper combines stakeholder theory,principal-agent theory,resource dependence theory,information asymmetry theory and signal theory,etc.,and puts forward research hypotheses about the impact of ESG performance on firm value and its mechanism.This paper takes China’s Shanghai-Shenzhen A-share listed companies from 2011 to 2020 as research samples,and uses the two-way fixed effect model of "individual + time" to conduct multiple regression to empirically test the proposed hypothesis.The findings are as follows:(1)Good enterprise ESG performance can significantly enhance enterprise value,and this conclusion is still robust after a series of robustness tests and endogeneity processing;(2)Mechanism test shows that enterprise ESG practice can promote the improvement of enterprise value through channels such as easing financing constraints and enhancing corporate reputation;(3)The ESG practice of non-state-owned enterprises,enterprises in non-heavily polluting industries and enterprises with high media attention has a stronger effect on the improvement of enterprise value.Based on the above research conclusions,this paper puts forward suggestions from three aspects:(1)Government departments should strengthen the construction of ESG system related laws and regulations;(2)Enterprises should continuously enhance ESG awareness and proactively disclose relevant information;(3)Financial intermediaries should establish a sound green financial system.Starting from the ESG performance of enterprises,this paper provides theoretical support and empirical evidence for stimulating the internal motivation of ESG practice,improving the ESG performance of Chinese enterprises,and promoting the development and construction of ESG in China.