| ESG refers to Environment,Social and Corporate Governance.The development of green finance has been put on the agenda at the current stage,and ESG,as a key development part of the system,has become the cornerstone of socially responsible investment.The dissemination of ESG concept has become a raging trend in foreign countries,and China has also followed the pace of the times.In 2018,a new version of the "Governance Guidelines for Listed Companies" was released in China,requiring Chinese listed companies to disclose ESG-related information.The company’s focus on ESG performance is to meet the current environmental requirements and social appeals,reduce the company’s own risks,and gain investor support,thereby increasing the company’s valuation.However,as listed companies have not pay enough attention to ESG performance and need to increase investment in this area as well as enhance the relevant policies,it remains to be studied the impact of listed companies’ ESG performance can have on the company’s valuation.This paper first sorts out the relevant research at home and abroad,classifies various company valuation methods used by scholars,and then summarizes the ESG research.This paper sorts out four categories of research about the impact of environment（E）,social responsibility（S）,corporate governance（G）and ESG performance on company valuation.Next,this paper takes Shanghai and Shenzhen A-share listed companies from 2012 to 2020 as samples,and studies the impact of the ESG performance of Chinese listed companies on the valuation by using the two-way fixed effect method,and then performs heterogeneity analysis and robustness test according to the industry,ownership nature and regional differences.At the end of the article,this study makes policy recommendations through empirical conclusions.The main conclusions of this paper are as follows: first,the better the ESG performance of listed companies in the domestic A-share market,the higher the valuation,in which corporate governance and social responsibility performance play a major role.Second,the better the ESG performance of listed companies in heavily polluting industries,the higher the valuation,in which the corporate governance plays a major role,however the improvement of ESG performance of listed companies in the environmental protection industry has no significant impact on the valuation.Third,dividing the listed companies according to their registered addresses,the listed companies in the east have improved their ESG performance,and their valuations have risen significantly.Among them,corporate governance and social responsibility performance play a major role.Listed companies in the central region have improved their ESG performance,and their valuations have risen significantly,in which corporate governance plays a major role.While listed companies in the west and northeast improve ESG performance,but have no significant effect on valuation.Fourth,the better the ESG performance of non-state-owned listed companies,the higher the valuation.Corporate governance and social responsibility performance play a major role,and the improvement of ESG performance of state-owned listed companies has no obvious impact on valuation.Based on this,this paper puts forward the following suggestions: first,enterprises should respond to national policies,establish relevant awareness,voluntarily and actively disclose ESG-related information,and ensure the authenticity and effectiveness of the disclosed information.Second,institutional investors should actively pay attention to the ESG performance of listed companies,to play an exemplary role,other investors should also establish a correct investment philosophy.Third,government agencies should improve policies and regulations,gradually transform the disclosure of ESG information from voluntary disclosure to mandatory disclosure,unify the caliber of disclosure,and establish a reward and punishment mechanism that based on different industries,nature of ownership,and regions. |
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