ESG Performance,Green Innovation And Financial Performance

The 14th Five-Year Plan has made clear arrangements for accelerating the green transformation and achieving "dual carbon" strategies,which has put forward higher requirements for enterprises’ sustainability.Under this trend,ESG,as an investment concept and evaluation guideline focusing on environment,social responsibility as well as corporate governance,is attracting more and more attention in the wave of green,low-carbon and sustainable development.Listed companies are an important part of China’s national economic development.Their role in promoting China’s high-quality economic development and green transformation is pivotal,and ESG performance is an important indicator of corporate sustainability.In this context,an in-depth investigation of the impact of ESG performance on financial performance and the path of this impact can help enterprises establish a correct ESG concept,improve environmental awareness,actively fulfill social responsibility,improve their own governance capacity,and ultimately improve their sustainable development capacity.Under the green sustainable development strategy,how enterprises achieve value creation through green innovation has become the focus of scholars,and the intrinsic mechanism of how ESG,as a new concept of how enterprises achieve sustainable development in terms of environment,society and corporate governance,reshapes the competitive value of enterprises’ green innovation for financial performance still lacks research.Based on extensive reading of relevant literature at home and abroad,this paper firstly elaborates the concepts related to ESG,green innovation and financial performance,and based on sustainability theory,stakeholder theory,information asymmetry theory and green technology innovation theory,we takes computer,communication and other electronic equipment manufacturing enterprises from 2015-2021 as the research sample to test the effect of corporate ESG performance on financial performance and the mediating role of green innovation in this study.On this basis,we further investigate whether there is any difference in the impact of ESG performance on financial performance under different property rights nature and marketization degree.The findings show that: firstly,ESG performance of firms in the computer,communication and other electronic equipment manufacturing industry has a positive impact on financial performance;secondly,green innovation can play a mediating role in the process of ESG performance of firms affecting financial performance.Thirdly,further analysis found that the impact of ESG performance on financial performance was more significant in non-state enterprises and high marketization regions.Finally,based on the above findings,recommendations are made at the government level,enterprise level and investor level,and also point out the shortcomings of this paper and the prospect of subsequent research.