| In recent years,China’s securities market has developed rapidly.On September 3,2021,Beijing established a stock exchange.However,with the securities market growing rapidly,China’s stock market has experienced stock price collapse for many times,which may impact the healthy development of China’s monetary market.Therefore,how to predict the stock price collapse of listed companies is the concern of many scholars in China.At this stage,Chinese scholars mainly study the stock price collapse risk of listed companies from the perspective of financial indicators or behavioral finance.This paper attempts to explore the relationship between ESG performance and stock price collapse risk of Listed Companies in China,which may provide a new angle and idea for the study of stock price collapse risk.ESG stands for Environment,Social Responsibility and Governance.ESG performance of listed companies is a very mainstream non-financial index evaluation concept in the world.It is an index derived from comprehensive consideration of three factors of enterprise environment,society and governance level.With the transformation and upgrading of China’s current economic structure,the external impact of listed companies has been paid more and more attention,and the ESG performance of listed companies has attracted more and more attention of investors.Based on this,this paper attempts to select the comprehensive ESG score of China’s Listed Companies in Bloomberg database as the proxy variable to measure the ESG performance of China’s listed companies,and empirically test the impact of China’s listed companies’ ESG performance on the risk of stock price collapse by using A-share listed companies in China from 2010 to 2019 as the research object.The results show that: first,the ESG performance of listed companies shows a significant negative correlation with the risk of stock price collapse.This may be because when the listed company ESG performs well,its probability of environmental problems will be reduced,its social responsibility will be more,and its internal management will be more sound,which will reduce the adverse information generated by the enterprise due to environmental factors and policy factors.At the same time,investors’ favor and trust in it will be enhanced,which will reduce the reaction of investors to the adverse information disclosed,so as to reduce the risk of stock price collapse;Secondly,the ESG performance of listed companies can be transmitted to the risk of stock price collapse through the attention of analysts and investors,that is,the attention of investors and analysts can act as an intermediary between the two.In addition,the heterogeneity analysis shows that at the enterprise level,the impact of ESG performance on stock price collapse risk is greater for state-owned listed companies than for non-state-owned companies.The possible reasons are that state-owned enterprises are less constrained by financing and investors have higher trust in state-owned enterprises;At the industry level,the ESG performance of listed manufacturing companies has a greater impact on the risk of stock price collapse than that of non manufacturing industries.The possible reasons are the large negative externalities of manufacturing enterprises and the difficulty of green transformation of manufacturing enterprises;At the regional level,ESG performance of listed companies in the East compared to the Central and Western regions has a greater impact on the risk of stock price collapse.The possible reasons are the early economic take-off,good financial environment and higher sensitivity to negative information in the eastern region.Finally,according to the empirical research results,this paper combs and summarizes the full text,and puts forward relevant suggestions. |
