The Impact Of ESG Performance On Corporate Investment Behavior

The outbreak of the new crown epidemic in 2020 has not only made the problem of resource scarcity increasingly prominent,but also caused environmental problems to become more serious.Against the background of the above-mentioned problems and increasing social conflicts,it is particularly important to integrate the three elements of environment,society and corporate governance into the investment behavior of enterprises.In order to promote the green and sustainable development of enterprises,enterprise managers and investors regard environment,society and corporate governance(ESG)as an element and consensus that cannot be ignored.ESG-related information disclosure is an essential prerequisite in the formation of investment decisions,and ESG performance evaluation provides companies with a method to evaluate and compare investment decisions.ESG performance represents the achievements of enterprises in terms of environment,society and corporate governance,and it provides a new and reliable perspective for listed companies and investors.The European and American financial markets are the birthplace of ESG performance and ESG investment concepts,which have been promoted and applied in many countries.Although China’s financial market has not been established for a long time,the internal mechanism and supervision of the market are not mature,and the evaluation system of enterprises is relatively imperfect,ESG performance still has a good development prospect in the domestic market.At present,domestic researchers’ research on ESG performance is still at a relatively insufficient level,so ESG performance has not yet become mainstream among domestic research scholars.Therefore,this article hopes to use the ESG performance of A-share listed companies in Shanghai and Shenzhen stock markets as an effective investment guide,and to study the role of investor sentiment between the two.From the perspective of investor sentiment,this paper conducts an empirical analysis of the impact of listed companies’ ESG performance on corporate investment behavior.This paper sorts out domestic and foreign literature research on ESG performance,corporate investment behavior,and investor sentiment,and puts forward the research hypothesis of this paper on the basis of relevant theories.The data are empirically analyzed.The main conclusions drawn in this paper are:there is a positive correlation between ESG performance and corporate investment behavior;when a listed company has a good ESG performance,the corporate value will increase and the corporate investment behavior will be improved;When other conditions are changed,the higher the sentiment of investors,the more confident investors are in the company,and the more obvious the role of ESG performance in promoting corporate investment behavior will be.Overall,ESG performance can explain the improvement of corporate investment behavior to a certain extent,and investor sentiment has a positive regulatory effect on the relationship between the two.Compared with the previous literature research,the research contribution of this paper is mainly reflected in the following aspects:This paper uses the most authoritative Bloomberg ESG rating data,quantifies the ESG rating data,and studies its specific impact on corporate investment behavior.It enriches the literature on the influence of non-financial information such as ESG performance on corporate investment behavior,and enriches the research on corporate investment behavior.Second,from the perspective of machine learning,this paper uses Python technology to mine network text data,and uses Naive Bayesian classification algorithm to analyze text sentiment and construct sentiment.Third,based on the perspective of investor sentiment,a new analytical study is constructed to explore the impact of ESG performance on corporate investment behavior.Based on the research conclusions obtained in this paper,this paper proposes the following three policy suggestions from the perspectives of listed companies,investors and market supervision and management departments:companies should strengthen corporate responsibility information disclosure,so that stakeholders can more accurately understand the company’s At the same time,ESG investment philosophy should be strengthened,and the importance of ESG practice and performance should be emphasized.In addition to the internal control and management of the company,external stakeholders such as investors should also conduct external supervision on the company in a timely manner,and make investment decisions based on the company’s ESG performance.Market supervision and management departments need to improve relevant systems and supervise the market at the same time.Good corporate ESG performance will improve corporate investment behavior,and the government’s regulatory support for ESG will generate positive sentiment among investors,further deepening this effect.To lay a solid foundation for the long-term sustainable development of the market and enterprises.