ESG Ratings, Asset Mispricing And Competitive Advantag

In recent years,ESG has become a popular business buzzword,and the demand for information on ESG from investors,creditors and other stakeholders has increased rapidly.ESG is not only a barometer of value,responsibility and risk,but also a bridge and a cornerstone to the future.China began to make efforts for the exploration and practice of ESG system in 2003,and has never stopped the pace of progress.The development of ESG in China has a broad prospect.We have institutional advantages and advantages for development.Enterprises play an irreplaceable role in the social economy.From CSR to ESG,the society has higher standards and requirements for the operation,development and governance system of enterprises,and ESG has opened up a new path for the sustainable development of enterprises.The development of any enterprise must be integrated into the national development trend,to achieve their own business and the trend of The Times resonance.Based on the background of global ESG development,this paper studies the process in which enterprises form competitive advantages,and explores the connotation relationship between ESG rating,asset mispricing and competitive advantage.This paper takes the data of A-share listed companies on Shanghai and Shenzhen exchanges from 2011 to 2021 as research samples,and uses multiple linear regression model to empirically test the impact of ESG rating on the competitive advantage of enterprises and the intermediary role of asset mispricing between them.The results show that,based on stakeholder theory,competitive advantage theory,signaling theory and behavioral finance theory,higher ESG rating can positively promote a firm’s competitive advantage.Enterprises actively assume responsibilities to different stakeholders in environmental,social and governance aspects,which is conducive to the accumulation of their own advantages and promote their own sustainable development.The results of the mediation effect test show that ESG rating can promote the competitive advantage of enterprises by alleviating asset mispricing,in which asset mispricing plays an intermediary role.All the above conclusions have passed the corresponding robustness test.All the above conclusions have passed the corresponding robustness test,and the test methods adopted include firm level clustering,changing research samples,replacing explained variables,instrumental variable method and replacing regression models,providing evidence for the reliability of the research results in this paper.Further research shows that the significance of the positive correlation between ESG rating and competitive advantage varies among enterprises with different property rights and equity incentive degrees.All dimensions of ESG ratings have positive independent effects on competitive advantage,and social and governance performance are more significant in promoting competitive advantage.