Research On The Impact Of ESG Performance On Corporate Financial Performance

The clear deployment of the "14th Five-Year Plan" on accelerating the green transformation of development mode,as well as the proposal of "carbon peak" and "carbon neutral" goals,put forward higher requirements for the sustainable development ability of enterprises.In this context,ESG,as an investment concept and evaluation standard focusing on corporate environment,social responsibility and corporate governance,has received more and more attention and recognition in the pursuit of green,low-carbon and sustainable development.The requirements for ESG information disclosure are more stringent and standardized,and investors are increasingly investing in ESG-related financial products.As an important market entity,listed companies are an important force in promoting high-quality economic development and green transformation.Under the influence of the government and investors,the ESG performance of listed companies will receive more attention,and will become an important factor affecting the sustainable development of enterprises.Therefore,studying the impact of ESG performance on corporate financial performance and its internal mechanism is of great significance for companies to establish a correct ESG concept,better implement ESG responsibilities,improve ESG performance,and promote sustainable development.On the basis of a large number of relevant domestic and foreign literatures,this paper first explains the connotation of ESG and the relationship between E,S,and G,and based on sustainable development theory,stakeholder theory,and principal-agent theory,this paper takes 2,676 sample enterprises with ESG rating In Syn Tao Green Finance from 2015 to 2020 as the research object,and uses the fixed effect model to conduct multiple regression analysis to explore the relationship between ESG performance and financial performance of listed companies,and to analyze and test the heterogeneity and impact mechanism.The following conclusions are drawn:(1)ESG performance has a significant negative impact on corporate financial performance;(2)Compared with state-owned enterprises,ESG performance of non-state-owned enterprises has a more significant negative impact on financial performance(3)Compared with high-level enterprises Polluting industries and non-high-polluting industries have a more significant negative impact on financial performance;(4)Compared with companies with high information transparency,companies with low information transparency have a more significant negative impact on financial performance;(5)Agency costs play a partial mediating role between ESG performance and financial performance,that is,the better the ESG performance,the higher the agency costs,leading to lower financial performance.According to the above research conclusions,suggestions are put forward from the government and enterprise levels respectively,and the shortcomings of this study and the direction of future research are pointed out.