Study On The Impact Of ESG Performance Of Multinational Corporations On Firm Value

Since the 21st century,the concept of sustainable development has been gradually introduced into economic life,and has been widely concerned and recognized.The concept of ESG is a unique investment concept and evaluation standard for transnational corporations.It focuses on the environmental performance,social responsibility and corporate governance of transnational corporations,and is also a major factor to measure the sustainable development ability of transnational corporations,thus becoming the main tool for high-quality green and sustainable development of transnational corporations.Compared with financial performance and management process,ESG performance of transnational corporations as non-financial indicators has become the focus of social subjects.ESG reports published by listed transnational corporations have become an important source of information for governments and investors at home and abroad to understand their financial status and investment prospects.In this context,this thesis takes Chinese MNCS as samples to study the impact of MNCS ’ESG performance on enterprise value and the differential impact brought by the heterogeneity of MNCS,and verifies the empirical conclusion through the case analysis of Zijin Mining.First,this thesis reviews relevant literature on the impact of environmental performance,social responsibility,corporate governance and comprehensive ESG performance on corporate value.Based on relevant concepts and theoretical viewpoints,this thesis analyzes the impact of comprehensive ESG performance on corporate value of transnational corporations and proposes research hypotheses.Secondly,based on the review and characterization of the international mainstream ESG rating system,domestic ESG regulatory policies,ESG performance and enterprise value development of sample MNCS,this thesis adopts the two-way fixed effect model and uses the data of 52 listed MNCS in "China’s Top 100 MNCS in 2022" from 2010 to 2021.To study the impact of ESG performance on firm value and the differential impact brought by the heterogeneity of MNCS.Finally,the case analysis of Zijin Mining industry supports the empirical conclusion.The results show that:(1)The average ESG performance of China’s top 100 multinational corporations is basically consistent with the average trend of enterprise value,showing a slow rising trend.(2)On the whole,active improvement of ESG performance of listed transnational corporations can improve corporate reputation,form competitive advantages,and increase corporate value accordingly.(3)The positive improvement of ESG performance by non-state-owned Mnes can increase the enterprise value,but this practice has no obvious promotion effect on the enterprise value of state-owned Mnes with special equity nature and social status.(4)The low cost required by non-polluting Mnes to improve their ESG performance is more conducive to their sustainable development,accumulate more reputation,and thus enhance their corporate value,while the high cost and social expectation of polluting Mnes will negatively affect the improvement of their corporate value.Therefore,this thesis puts forward the following suggestions: transnational corporations should integrate ESG strategies and strengthen ESG management;transnational corporations with different ownership characteristics and industry nature should choose appropriate ESG strategies according to their own nature;The regulatory authorities should promote the improvement of the ESG evaluation system,strengthen the supervision of ESG information disclosure and do a good job in public ESG publicity.Investors should take the initiative to understand the concept and principle of ESG investment,determine reasonable ESG investment objectives,and improve ESG investment methods.