Management Capacity And Enterprise ESG Performance

ESG is an investment concept that is shorthand for environmental responsibility,social responsibility and corporate governance,and incorporates them into investment decisions for consideration.It not only highly fits the " five in one " overall layout and new development concept,but also makes it quantifiable for enterprises to practice sustainable development and green development.At present,government departments,regulators and industry associations have launched a series of incentive policies to guide investors to practice ESG investment concepts,and to encourage listed companies to pay attention to and actively improve their ESG performance.However,the role of policy incentives and regulatory guidance is stretched in the context of a market economy.It is crucial to stimulate the endogenous motivation of enterprises,promote ESG performance,and achieve a ’ win-win ’ between market value and social value.In this case,what factors affect the performance of enterprise ESG? It is worth exploring.In the modern company system,due to the separation of the two powers,the management determines the production and operation of the enterprise,and the management ability directly affects the decision-making effect.The enterprise ESG performance is essentially a management in dealing with social issues related to the enterprise.Therefore,it is necessary to explore the influencing factors of ESG performance from the perspective of management characteristics in order to enable enterprises to consciously fulfill ESG responsibilities from the inside.So,can management ability improve ESG performance?In order to answer this question,this paper takes Shanghai and Shenzhen A-share listed companies from 2010 to 2021 as research samples.Based on principal-agent theory,upper echelons theory,stakeholder theory and signal transmission theory,this paper uses DEA-Tobit two-stage method to measure management ability,and deeply studies the impact of management ability on ESG performance and its internal mechanism.The findings indicate that the managerial competence has significant positive relationship with the ESG performance,that is,the stronger the management ability,the better the enterprise ESG performance.The research on the mechanism of action shows that management ability can improve the ESG performance of enterprises by strengthening the quality of internal control.At the same time,in order to clarify the relationship between the two and dig deep into the differences caused by different internal and external influencing factors,through group testing,it is found that in enterprises with high management shareholding ratio,enterprise digitization level and media attention,and enterprises with low financing constraints,the promotion effect of management ability on enterprise ESG performance is more obvious and the effect is stronger.Finally,when further exploring the ’ benefits ’ of management ’s improvement of ESG performance,it is found that management ability can increase institutional investors ’ shareholding preference and bring more funds and opportunities to enterprises by improving ESG performance.This paper innovatively explores the driving factors of enterprise ESG performance,enriches the empirical research in the field of ESG performance,provides empirical evidence for enterprises to improve their own ESG level,and has important practical significance for promoting the sustainable development of enterprises,promoting high-quality development and accelerating the construction of new development pattern.