Research On The Impact Of ESG On Corporate Value

After experiencing the COVID-19 epidemic,the global capital market has reexamined the economic development model and focused on promoting the "green recovery" of the post-epidemic world economy,which has put higher demands on the sustainability of enterprises.In this context,corporate ESG performance is highly respected globally as a non-financial indicator that tries to solve the problem of conflict between environmental value,social value and economic value of enterprises.However,as its development in China is still in its infancy,enterprises often face cognitive conflicts and confusing practices in the process of practicing ESG concept,such as can ESG performance of listed manufacturing companies truly enhance corporate value?Which aspect of ESG performance can enhance enterprise value? Such questions are also of great concern in the stage of cross-fertilization of new economic forms and highquality development in China.This paper focuses on the correlation and mechanism effects between ESG and enterprise value,and further investigates the relationship between the two based on heterogeneity.In order to explore the impact of corporate ESG performance on enterprise value,the data selected in the paper are from listed manufacturing companies that meet the requirements,which from 2010-2021 as the sample for analysis,uses multiple regression models to test the positive impact of ESG performance on enterprise value,and splits ESG performance into three levels to further explore the impact of single factors on enterprise value respectively and find out the most significant factors;then exploring the mechanism effect of liquid assets in the impact of ESG performance on firm value,and finally investigating the difference in the impact of firm heterogeneity on the relationship between the two.Further,the following conclusions are drawn: in the manufacturing industry,first,there is a positive effect of corporate ESG performance on enterprise value,among which,the positive effect of CSR performance on enterprise value is the most significant;second,there is no lag effect of corporate ESG performance on enterprise value;third,the mechanism effect of both is shown by the fact that good corporate ESG performance will show a good trend in its liquidity management,which in turn lead to the improvement of enterprise value;fourth,the ESG performance of companies audited through Big Four accounting firms,non-state-owned enterprises,and companies with small financing constraints have more significant positive effects on enterprise value.Finally,based on the realistic background of China,we propose several suggestions for ESG concept to enhance corporate value: from the enterprise level,enterprises should follow the trend and enhance the attention and application of ESG concept;from the stakeholder level,use ESG information disclosure to identify investment opportunities and improve inefficient investment behavior;from the government level,improve the evaluation system and information disclosure system of corporate ESG performance,etc.It provides theoretical support and suggestion reference for future enterprises to accurately realize the shortcomings of their sustainable development ability,promote enterprises to enhance their performance and attention to various aspects of ESG,and further enhance their corporate value.