Research On The Impact Of ESG Performance On Enterprise Performance

Currently,The economic development of Chinese economy has entered a new normal,leading high-quality economic development to become the main theme of the era with the new development concept of innovation,coordination,green,openness,and sharing.As the basic constituent unit of social economy,high-quality development of enterprises is the micro foundation of high-quality economic development.However,in recent years,with the increasing risks of climate change and public health,the downward pressure on the global economy has increased,and enterprise development is facing enormous challenges.How to stay true and move towards high-quality development goals in an uncertain external situation has become a practical issue facing enterprises.The ESG concept points out a clear direction for enterprises to achieve high-quality development.In the current context of China’s efforts to promote common prosperity,vigorously promote the construction of ecological civilization,and achieve the goals of carbon peaking and carbon neutrality,implementing the ESG concept not only helps to achieve corporate goals,but also plays an important supporting role in achieving the above macro goals.Therefore,how to guide enterprises to implement ESG concepts and actively improve ESG performance has become a focus issue at the current theoretical and practical levels.This article focuses on this background,extracts research questions from the perspective of integrating corporate goals and social goals,and then conducts research on the relationship between ESG performance and corporate performance.Based on a review of existing relevant literature,this article clarifies concepts related to environmental performance,social performance,governance performance,and ESG performance,as well as basic theories such as stakeholder theory,information asymmetry theory,and principal-agent theory.In combination with existing research,this article proposes research hypotheses on the relationship between ESG performance and corporate performance.Based on the sample of listed companies in the manufacturing industry of Shanghai and Shenzhen A-share companies in China from 2015 to 2021,this paper empirically examines the impact of ESG performance on corporate performance,explores the specific mechanism of the relationship between the two,and further analyzes the impact of environmental,social,and governance dimensions of performance on corporate performance,differences and similarities in the relationship between the two under different life cycles,different ownership properties,and different information disclosure intentions,The following research conclusions are drawn:(1)Good ESG performance can promote enterprise performance improvement.(2)Mechanism testing shows that ESG mainly promotes corporate performance by alleviating financing constraints,reducing operational risks,and reducing agency costs.(3)Further analysis found that the performance of the three dimensions of environment,society,and governance have a positive impact on corporate performance;Among mature enterprises,private enterprises,and voluntary disclosure enterprises,ESG performance has a stronger impact on corporate performance.Finally,based on the above research conclusions,it proposes to actively implement and implement the ESG concept for enterprises and their stakeholders;Include ESG performance in the investment decision-making framework;improve ESG regulation,and other countermeasures and suggestions.The research in this article can help stimulate the internal motivation of enterprise ESG improvement,promote high-quality development of enterprises,and further assist in the realization of macro goals such as common prosperity,ecological civilization construction,the goals of carbon peaking and carbon neutrality,and high-quality economic development.