Research On The Impact Of Long For’s ESG Performance On Corporate Financial Performance

The real estate industry is one of the pillar industries in China’s national economy and also one of the main sources of carbon emissions in China.In the context of the implementation of the "Double Carbon" strategy,in order to cope with climate change and cooperate with the national carbon governance policy,the content and system of carbon emission related work is gradually clarified in the management strategy of real estate enterprises.As a result,ESG,as a bridge to measure the relationship between enterprises and the environment,social responsibility and corporate governance,has gradually entered the public’s perspective.State departments have also issued policies to incorporate ESG into the risk management system of enterprises,and ESG has become an important quantitative tool to promote the important concept and practice of green development in the market.In such a context,it is particularly important to study the impact of ESG performance of real estate companies on corporate financial performance.In the context of double carbon implementation,this paper takes corporate ESG performance as the entry point,adopts literature analysis,case study and empirical analysis methods,and compares the current situation and implementation effects of Long For in terms of environmental responsibility,social responsibility and corporate governance based on the theoretical foundations of sustainability theory,stakeholder theory and signaling,taking Long For as an example.Secondly,financial indicators are selected from comprehensiveness and relevance,and spss is used to factor analyze the financial indicators of Long For for thirteen years to obtain the comprehensive performance scores of Long For ’s financial performance,and regression analysis is conducted with ESG scores of Long For to conclude that ESG performance of Long For and its financial performance show a positive correlation.Then,the effect of ESG performance of Long For on corporate financial performance is analyzed specifically,and the following conclusions are summarized.First,the good ESG performance of Long For helps the group improve the utility of decision making,broaden corporate financing channels,realize the virtuous cycle of capital,and promote sustainable development of the enterprise.Second,the good ESG performance of Long For can improve the brand effect of the enterprise’,promote the enterprise’s green building technology innovation and improve the enterprise’s technology revenue.Third,the good ESG performance of Long For helps the enterprise to improve resource utilization efficiency and reduce operating costs,but these advantages can hardly compensate for the resulting cost control pressure.Finally,in view of the ESG implementation of Long For,this paper proposes that the internal carbon information disclosure framework should be improved to strengthen corporate capital control,issue green bonds to relieve financial pressure,and optimize the implementation framework of green building projects to reduce energy consumption.