Analysis On The Impact Of China Securities ESG Score On Enterprise Value

The concept of ESG investment was put forward by the United Nations Global Compact in 2004.For developed countries,ESG investment is in the stage of perfection,while for China,ESG investment is in its infancy.The proposal of the “dual carbon” target in 2020 ushered in development opportunities for ESG.At present,the investment concept of ESG has gradually become the consensus of investors and enterprises,investors will evaluate the comprehensive performance of enterprises in environment,society and corporate governance,and enterprises also actively disclose ESG information for investors’ reference.Therefore,the ESG evaluation system has been improved and gradually matured to meet the needs of development,and its value has become increasingly prominent.In addition,many scholars have drawn inconsistent conclusions on the relationship between ESG and corporate financial performance,leading to the insufficient motivation for enterprises to conduct ESG investment activities.Based on the perspective of ESG score for the first time,this paper explores the influence of ESG score calculated from environmental,social and corporate governance scores on enterprise value,which broadens the research horizon in the field of ESG and enterprise value,and has certain theoretical and practical significance.Firstly,this paper reviews the domestic and foreign literature on ESG and corporate profits and risks to understand the basic research situation in this field.Secondly,based on the theory of sustainable development,stakeholder theory,corporate social responsibility theory and ESG transmission mechanism theory,the influence mechanism of ESG performance on corporate value is sorted out,and the research hypothesis is put forward on this basis.Then,the development status and value of China Securities ESG evaluation system were analyzed.Qn this basis,the statistical characteristics of China Securities ESG score were analyzed by combining ESG score data.Then 235 listed companies in the csi 300 ESG benchmark index were selected as the research samples,and the constituent stocks were divided into different ESG rating groups according to the ESG score results.For enterprise value,from profitability,risk,valuation of three dimensions.At the same time,choose quantifiable indicators to measure profitability,heterogeneous risk and systemic risk,comparative analysis method is used to verify the three transmission mechanisms of ESG score to profit,risk and valuation.Using empirical study method at the same time to study the influence of ESG on corporate profitability,heterogeneous risk and systemic risk by building regression models.The results show that: firstly,the higher the ESG score is,the higher the profitability of the enterprise is.Secondly,the higher the ESG score is,the lower the heterogeneous risk is.Lastly,the higher the ESG score is,the lower the systemic risk of the enterprise is,the lower the cost of capital is,thus the higher enterprise valuation is.According to the three conclusions and combined with DCF model,it is concluded that the relationship between ESG score and enterprise value is positive correlation.The last chapter provides relevant policy references for regulators,rating agencies and enterprises.