Research On The Impact Of ESG Rating On Enterprise Performance

Since the 19 th National Congress of the Communist Party of China,the party and the state have issued a series of policy documents,placing the construction of ecological civilization in a prominent position and attaching importance to the coordinated development of economy,society and resources and environment.Green development has become one of the important directions of the country’s economic transformation.In addition,the corporate performance of listed companies is one of the important engines to promote economic development and plays an important role in the country’s economic and social development.As a synonym for green economic development,ESG has attracted widespread attention from regulators,investors and listed companies.Listed companies pay attention to ESG ratings,which can help them recognize the inadequacies of their own sustainable development capabilities,and promote companies to improve their performance in all aspects and further improve corporate performance.Internal control plays an important role in the production and operation process of an enterprise and is closely related to enterprise performance.Therefore,it is of great practical significance to incorporate internal control into the same research framework to further study the relationship between ESG ratings,internal control and corporate performance,and to help the country’s high-quality economic development.Based on this,this thesis firstly sorts out the research status of ESG rating,internal control and corporate performance at home and abroad,and then combines relevant theories to discuss the relationship between ESG rating and corporate performance.Secondly,study the impact path of ESG rating on corporate performance,and explore whether internal control plays a mediating effect between ESG rating and corporate performance,that is,whether ESG rating can alleviate the information asymmetry between companies and external stakeholders,so that companies face Stronger external oversight and greater reputational pressure reduce management’s opportunistic behavior,improve the quality of corporate internal control,and then promote the development of corporate performance.Finally,taking the A-share listed companies from 2010 to 2020 as the research sample,choosing the rating score of the China Securities Regulatory Commission to measure the ESG rating,the Dibo database index to measure the quality of internal control,and the return on total assets to measure the corporate performance hypothetical test.The research results show that:(1)there is a positive correlation between ESG rating and corporate performance,that is,the higher the ESG rating,the better the corporate performance;(2)there is a positive correlation between ESG rating and internal control.That is,the company conducts ESG rating It helps to improve the effectiveness of internal control;(3)Internal control plays a partial mediating effect between ESG ratings and corporate performance.According to the research results,corresponding policy recommendations are put forward from the enterprise level and the government level.The research in this thesis provides micro-evidence for in-depth understanding of the relationship between ESG rating,internal control and corporate performance of listed companies,which is conducive to strengthening companies’ attention to ESG,improving corporate governance,strengthening internal control management,and improving corporate sustainability for listed companies.It can also promote the sustainable development of listed companies and provide new insights for investors’ investment decisions.