Research On The Impact Of Corporate ESG Performance On Corporate Performance

ESG is an acronym for Environmental,Social and Governance,and is commonly used as a non-financial performance indicator to measure the environmental,social and governance aspects of a company’s performance.ESG performance includes not only a company’s own behavior,but also the behavior of its supply chain and business partners.A company’s excellent ESG performance can bring many benefits,such as reducing management risks,improving market recognition,and enhancing the company’s social image,etc.ESG is more focused on non-financial performance than traditional financial performance,and is an important investment concept for companies in their sustainability strategies.Classical economics argues that the performance of social responsibility creates positive externalities that rational people should avoid because it is uneconomical.However,more and more studies now show that corporate ESG performance has a positive impact on corporate performance and market performance.To explain this positive relationship,this paper explores the core ideas of sustainability theory,economic externality theory and CSR theory that underpin ESG,based on the study of relevant domestic and international literature,and explores the ESG of Chinese companies from the perspective of financing constraints The impact of ESG performance on corporate performance from the perspective of financing constraints is of great significance at the present time when China’s economic development model is entering a critical period of transformation.In this paper,we selected the ESG data of enterprises disclosed in A-share CSI300 index from 2015-2021 as a sample,established a panel index,and conducted an empirical analysis using a benchmark regression estimation model.Finally,this paper finds that(1)there is a positive effect of ESG performance of enterprises on corporate performance(2)the negative relationship between financing constraints and corporate performance,and the higher the degree of financing constraints,the lower the corporate performance(3)thirdly,financing constraints weaken the positive relationship between ESG performance and corporate performance.On this basis,this paper suggests that the regulation and implementation of ESG performance should be strengthened to promote sustainable corporate development.In addition,future research can consider further exploring the impact of ESG performance on corporate performance in terms of industry,firm size,and geography.