Research On The Impact Of ESG Performance On Enterprise Value

In recent years,China has attached increasing importance to corporate environmental governance,social responsibility and corporate governance,and THE ESG evaluation system has become a mainstream evaluation concept for listed companies in the world.Many rating agencies,such as Shangdao Ronggreen and FTSE Russell,have conducted comprehensive ESG scores for domestic listed companies.However,the ESG scores of different companies in the same industry vary greatly,which has a great impact on the stock price and financial performance of enterprises.How to obtain high ESG score based on ESG evaluation system and maximize corporate financial performance has become a hot topic in current research.In this context,this paper aims to combine the empirical results of the correlation between ESG score and stock price and the case studies of Huabai Testing and Huashe Group,so as to put forward some feasible suggestions for the development and strategic planning of listed companies in the future.First of all,this study analysis combined with related theories,from the Angle of the porter hypothesis theory was introduced to the evaluation index of non-financial indicators,such as environmental protection performance can reduce crowding out already,can promote the benign development of the company in the long-term,the direction of development,in the production and operation so that we can make the company make the right decisions at the same time maximize the allocate funds;From the perspective of information transmission theory,a company is a social contract network,and the whole process of its realization is based on the contract with all parties,which is the company fulfilling its own social obligations.In the operation of an enterprise,all stakeholders are in the form of interest groups and invest in the development of the company in different ways,and the company must do its best to safeguard the interests of all stakeholders.Next,this paper analyzes THE ESG scores of WIND database of domestic listed companies since 2017,and basically shows that ESG scores of different industries differ greatly as well as ESG scores of different companies in the same industry.Then,empirical research is conducted based on stock price correlation.It is found that there is a strong correlation between ESG score and stock price.The improvement of ESG score can affect investors’ evaluation of enterprise value and help enterprises to further improve their financial operating conditions.In the end,the paper takes Huabai Testing and Huashe Group as a comparative case study.The two companies both belong to the professional technical service industry,but there are significant differences in ESG performance and stock price changes from 2018 to2021.Through the case study of CTI,it is found that the excellent ESG performance of enterprises can improve the financial performance of enterprises,promote enterprises to reduce operating costs,improve the return on total assets of enterprises and further enhance the core competitiveness of enterprises.Through the case study of Cina Design Group,it is found that the enterprise’s timely and incomplete disclosure of ESG information will affect the enterprise’s ESG score and thus the market value of the enterprise.Finally,some suggestions are put forward for the development of listed companies in China from the perspectives of enterprise management and ESG information disclosure.