Research On ESG Shareholding Characteristics Of Social Security Funds And Its Impact On Listed Company Performance

In the last few years,with the increasingly serious problem of population aging in China,the financial pressure of social security funds has become more and more prominent.How to take advantages of the pivotal market role of social security funds is a vital issue which is supposed to be discussed urgently.By virtue of its professional ability,the social security fund selects enterprises with long-term investment value,realizes the preservation and appreciation of assets through investment in the market,and has an impact on the invested companies through supervision and governance during the shareholding process.Nowadays,guided by the the conception of sustainable development,the evaluation of social security funds on listed companies is no longer limited to the quantification of financial indicators.At the same time,it will further measure the ESG performance of enterprises,analyze the performance of investment objects in terms of environment,social responsibility and corporate governance.The ESG shareholding behavior of social security funds will also further affect its function in the performance of listed companies.Therefore,through thorough theoretical analysis and exact empirical research,it is of great practical value to deeply enquiry the new characteristics of the shareholding of social security funds,the key role in China’s capital market,and the effect of shareholding on corporate performance,and to verify the necessity of listed companies actively practicing ESG from the bedding of social security funds,for the optimal allocation of social security funds,improving the ESG awareness of China’s market entities,and improving the current situation of the low level of ESG development.This paper firstly reviews the domestic and international literature related to the research topic,and from the perspective of institutional investors as a whole,leads to a further literature analysis of the shareholding behavior of social security funds and the influence of social security fund shareholding on corporation expression from the perspective of portion,and states the realistic development background of various elements of social security funds and ESG respectively to improve the analytical framework.In the empirical part,on account of the panel data of A-share public companies in China from 2010 to 2019,the paper chooses a mixed regression model to control the two-way fixed influence of industry and year,respectively examine the impact of ESG performance of listed companies on the shareholding of social security funds,and the impact of the shareholding of social security funds on the performance of listed companies,and uses the instrumental variable method,variable replacement method,adding control variables,extending panel interval and model replacement method to test the robustness of the research results.The research results show that social security funds have significant high ESG shareholding characteristics,good ESG performance of enterprises can indeed attract social security funds to hold shares;Compared with non-state-owned enterprises,social security funds tend to hold state-owned enterprises with excellent ESG performance;The shareholding of social security funds can promote the performance of listed corporations,and this role will gradually weaken with the rise of ESG scores of enterprises.To this end,in order to further play the positive role of ESG shareholding behavior of social security funds in improving the financial performance of enterprises,the following advice is raised from three levels of government departments,social security funds and enterprises: strengthen supervision and improve ESG information disclosure standards;Integrate the ESG factor into the investment framework,and fully play the role of supervision and governance of enterprises;Strengthen ESG capacity building and actively disclose ESG information.