Research On The Impact Of ESG Performance On Corporate Valu

The concept of sustainability is becoming increasingly important in today’s society and ESG,which is an important basis for measuring corporate sustainability,is gradually becoming an important factor that cannot be ignored in corporate development and is receiving more and more attention in society.Previously,most scholars believed that there was a negative correlation between economic efficiency and active perception of social responsibility.Over time,ESG has become increasingly important and the rating system has become more sophisticated,with social and governance factors playing an important role in rating indicators.Firstly,ESGs can help increase the focus on the environment,social responsibility and governance,and encourage companies to put sustainability at the forefront of their objectives.They will also reduce information asymmetries and allow external investors to access information about the company in a more transparent environment.This set of measures will enable the company to raise funds at a lower cost and better secure the future development of the company.Based on this analysis,this paper presents Yanzhou Coal as an example of a company that operates in a specific industry and has a good ESG performance in the sector.The paper begins with a review of the relevant literature and then outlines the basic framework of the paper.It then introduces the concept of ESG performance and corporate value and the underlying theories.Next,it analyses Yanzhou Coal’s initiatives in recent years and the differences from previous years,from the perspective of E,S and G,and presents the company’s strengths and weaknesses.In the following chapters,the impact of ESG performance on enterprise value is analysed and the division of enterprise value into book value and market value is examined.To further analyse the mechanism of the impact,the four main perspectives,i.e.cost of equity,cost of debt,cash flow of equity and social concerns,are used to further explore how ESG performance affects firm value.The paper concludes with conclusions and recommendations.