Research On The Influence Of ESG Performance On Enterprise Investment Efficiency

ESG stands for the acronym of environment(E),society(S),and corporate governance(G).It’s an investment concept that enterprises fully consider their own environment,society,and governance when making investment decisions.It is the extension and enrichment of social responsibility investment.From the construction of the five-in-one overall layout proposed by the 18 th National Congress to the vigorous promotion of the green and low-carbon development model in the 14 th Five-Year Plan,to the sustainable development concept that highlighted the promotion of green development and the promotion of harmonious coexistence between human and nature at the 20 th National Congress,which is highly consistent with the ESG investment concept,ESG responsibility investment has attracted much attention since it was proposed.In order to promote enterprises to enhance their sense of responsibility and actively practice ESG investment,the government and regulatory agencies have issued a series of relevant measures,aimed at supervising enterprises to actively disclose ESG-related information and improve their ESG performance,so as to achieve green and sustainable development.However,only relying on the supervision of the regulatory authorities will strengthen the opportunistic behavior of enterprises,and make false disclosure to improve the performance of ESG.Only by stimulating the endogenous motivation of enterprises and allowing enterprises to obtain more benefits and sustainable development ability can the long-term operation of ESG responsible investment be realized.Therefore,this thesis focuses on answering the following questions: whether ESG performance can play an economic role in improving investment efficiency,through what channels,and whether the size of decision-makers’ power has a certain impact on the role of ESG.Based on the principal-agent theory,information asymmetry theory,signal transmission theory,and stakeholder theory,this thesis combs the relevant literature and puts forward assumptions.Taking the A-share listed companies in 2011-2020 as the research sample,it constructs a fixed effect model for regression analysis to study the impact of ESG performance on investment efficiency,and on this basis,it studies the impact mechanism of ESG performance on investment efficiency and the effect of CEO power on ESG performance.The research results show that ESG performance is conducive to alleviating underinvestment and restraining over-investment,thus improving investment efficiency.The research on the impact mechanism shows that ESG performance will improve the corporate reputation and the shareholding ratio of institutional investors,thus improving the investment efficiency.Further,the intermediary effect of corporate reputation is only found in the under-investment sample group.CEO power will weaken the governance effect of ESG performance on investment efficiency,which only exists in the over-investment sample.The main contributions of this thesis are as follows:(2)This thesis further examines the intermediary effect of corporate reputation and institutional investors’ shareholding and the regulatory effect of CEO power,so as to deepen the research on the impact of ESG performance on investment efficiency.