Research On The Impact Of ESG Performance Of Listed Companies On Enterprise Value

In recent years,China’s economy has moved from a stage of rapid growth to a stage of high-quality development.In the current era of advocating the "dual carbon" strategy,the green economy is prevalent,and society has put forward higher requirements for the environmental protection,social responsibility,and corporate governance of enterprises as the main body of the micro economy.In the stage of highquality development,the past development models that sacrificed the external environment for economic benefits,focused solely on the speed of development,ignored the social responsibilities that enterprises should assume,and did not pay attention to the internal corporate governance of enterprises were difficult to sustain.Enterprises needed to explore new sustainable development models to help enhance their value.In this context,the ESG concept emerged as the times require.The ESG concept includes three parts: E(Environmental),S(Social),and G(Governance),which measure the performance of enterprises in environmental protection,social responsibility,and corporate governance capabilities.They require enterprises to be more proactive and willing to engage in more environmental protection practices,actively assume social responsibility,optimize corporate governance structures,and improve managers’ corporate governance capabilities.This is the embodiment of the concept of sustainable development at the corporate level.The development of ESG in China started relatively late.At present,China adopts the principle of "voluntary disclosure" for the ESG information disclosure of enterprises,and enterprises actively disclose less ESG-related information.However,from the perspective of foreign countries,most of the world-class enterprises have conducted ESG information disclosure and related practices.Due to the lack of research on this aspect in China,there is no final conclusion on whether ESG performance will affect the enterprise value,and if so,how to affect it.In order to explore the impact of ESG on the economy,this paper chooses to start from the enterprise level,and study the impact of ESG performance on the enterprise value,as well as the specific mechanism of action.On the one hand,through reading the literature,this paper understands and analyzes the previous research results,and puts forward corresponding theoretical assumptions based on theoretical analysis.On the other hand,through empirical analysis,use data to explore the impact of ESG performance on enterprise value.This paper selects all A-share listed companies from 2009 to 2021 as research samples,uses CSEC ESG data to measure the ESG performance of enterprises,and uses ROA and TOBINQ to measure the internal accounting value and external market value of enterprises.There may be endogenous problems between the ESG performance and enterprise value of enterprises.In order to avoid the serious impact of endogenous problems,the explanatory variables are all delayed for one period in the empirical study.First,it studies the impact of ESG performance on enterprise value by constructing a fixed effect model.Secondly,in order to study the specific mechanism,we used the institutional investor shareholding ratio,financing constraints and financial distress to analyze the mechanism.Then,it analyzes the heterogeneity of the value effect of ESG of enterprises with different property rights and different positions to explore whether there are differences in the impact results.Finally,replace the explained variable and the explanatory variable respectively,replace the two explanatory variables with the return on equity(ROE)and the economic value added per share(EVRA),and use the ESG score of Hexun to replace the data of Huazheng ESG,and carry out the robustness test respectively.The results show that:(1)ESG performance can promote the improvement of enterprise value.The better ESG performance,the higher enterprise value.(2)The better the ESG performance of enterprises,the more willing institutional investors will be to invest and choose to increase their holdings.(3)The better the ESG performance of an enterprise,the more it can alleviate the financing constraints.(4)The better an enterprise’s ESG performance,the more it can avoid financial distress.(5)The high ESG performance of non-state-owned enterprises can improve the enterprise value more than that of state-owned enterprises.(6)The ESG performance of enterprises with two jobs in one is more significant than that of enterprises with two jobs separated.Compared with the existing literature,this study may have the following innovations: First,in terms of topic selection and research perspective,previous scholars’ studies have focused on the impact of the environment,society and corporate governance capacity on the enterprise alone,while considering the impact of the subdimension on the enterprise value alone,focusing only on the investment of a single dimension,and not considering this option will directly affect the degree of investment of enterprises in other dimensions,it will lead to different impacts on enterprise value in other dimensions,and become the pursuit of environmental benefits,social benefits and corporate governance benefits alone,which is not conducive to the long-term development of the enterprise as a whole.This paper takes the overall ESG performance of enterprises as the research object,and studies its impact on enterprise value,which can guide enterprises to carry out more ESG practice,fulfill social responsibilities,strive to improve corporate governance,encourage enterprises to strive to become environmentally friendly enterprises while improving economic benefits.In the long run,the overall consideration can better reflect the performance of enterprises at all levels,and is conducive to the sustainable development of enterprises.Second,in the selection of indicators,most scholars choose external value(Tobin Q is used to measure enterprise value)rather than internal value when discussing enterprise value.When exploring the value effect of ESG performance,this paper considers internal short-term value(ROA)and external long-term value together,and discusses the similarities and differences between the short-term value effect and long-term value effect of ESG performance,Analyze the specific mechanism of ESG performance affecting enterprise value.