Study On The Impact Of Huaneng International ESG Information Disclosure On Financial Performance

The ESG concept has emerged as a result of global climate change anomalies and the intensification of the greenhouse effect,and the public in various countries paid close attention to the issue of sustainable development of society.ESG carries corporate energy conservation and emission reduction,social responsibility fulfillment,and internal governance capabilities,while domestic and international organizations also widely use the ESG system to evaluate whether a company is sustainable.In this context,enterprises expect to get social recognition by disclosing ESG information to make their long-term sustainable development.ESG information disclosure becomes a bridge between enterprises and stakeholders,through which enterprises transmit useful information to beneficiaries,so as to alleviate information bias between them,enhance beneficiaries’ trust in enterprises,improve enterprises’ competitive advantages,and bring good influence to enterprises’ operation.However,domestic ESG information disclosure research is still in the initial stage,and the principle of voluntary disclosure is applied,resulting in a small number of listed companies disclosing ESG information every year.This paper will explore the impact of ESG information disclosure on the financial performance of enterprises.In the context of sustainable development,power enterprises with high energy consumption and high emissions are widely concerned by the public.Huaneng International,a leading enterprise in the power industry,has disclosed ESG reports for many years in a row.This paper selects Huaneng International as a case company to explore the impact of ESG information disclosure on its financial performance,to sort out and summarize the current status of research in related domestic and international literature,to explore the form,content and content quantification of Huaneng International’s ESG reports in the past five years from three levels: environmental,social and corporate governance,respectively,and to analyze The results of ESG rating of enterprises by Business Road Rong Green.At the same time,we study the market’s reaction when companies first disclose ESG reports,analyze the impact of Huaneng International’s disclosure of ESG information on corporate earnings,debt service,development,operating capacity based on theories such as social responsibility theory,information asymmetry theory and related impact mechanisms,calculate the score of Huaneng International’s comprehensive financial performance from 2015 to 2020 using the entropy weight method,and analyze the impact of its information disclosure on comprehensive financial performance.The study concludes that(1)the market has a strong positive response to the first release of ESG reports by enterprises;(2)the impact of enterprises’ disclosure of ESG information on financial performance is not significant in the short term,but has a greater enhancement effect in the long term.Using the analysis results,this paper draws corresponding recommendations from the enterprise,government,and stakeholder levels,respectively,expecting to provide case support for the development of ESG information disclosure by electric enterprises and promote listed enterprises to strengthen ESG management,actively disclose ESG information,and achieve sustainable corporate development.