Study On The Impact Of Esg Performance On Financial Performance

Rapid economic development has brought about a series of problems such as environmental pollution and unethical business practices,and the promotion of high-quality economic development has become the guiding principle of China’s economic development.Compared to traditional investment models that focus only on financial indicators,ESG investment takes into account environment,society and corporate governance,contributes to the synergistic development of the economy,society and the environment,making it an important choice for long-term development.However,compared to developed countries and regions around the world,ESG investment in China has started late and is not yet well developed,and some enterprises do not pay enough attention to ESG investment and invest enough in it.Therefore,as the main force of China’s economic development,enterprises need to continuously improve their ESG investment level and promote the construction and development of ESG in China.This paper examines the impact of the level of ESG performance on the financial performance of a company by taking its financial performance as the starting point,and investigates the moderating role of two types of corporate heterogeneity,namely the nature of ownership and the power allocation pattern of the chairman and managing director,in the relationship between the ESG performance and the financial performance of a company.In view of the importance of this factor,this paper takes the initiative to study it as a moderating variable,as there is a lack of research on the moderating role of chairman and managing director power allocation patterns in the above relationship.After measurement,Chinese domestic A-share listed companies are selected as the research object for the eight consecutive years from 2013 to2020,and the ESG rating data of Huazheng is used to represent the ESG performance of corporate for this paper’s empirical study.The results of the study show that the increase in the ESG performance of the corporate has a positive contribution to the improvement of its own financial performance,that the nature of ownership and the power allocation model of the chairman and general manager have a significant moderating effect on the positive relationship between the level of corporate ESG performance and financial performance,and that compared to state-owned enterprises and enterprises implementing the two-job separation model,the effect of the ESG performance of the corporate on the improvement of financial performance is significantly stronger in non-state-owned The positive relationship between the ESG performance of the corporate and financial performance is significantly stronger in non-state-owned enterprises and enterprises implementing the twoemployer model.It is hoped that the research in this paper will broaden the research ideas for related studies in China,and the results of this paper will also help to deepen the understanding and attention of enterprises to ESG investment and promote the construction and development of ESG system in China.