Effect Of ESG Performance On Corporate Financialization

ESG performance of enterprises has become an important reference for attracting investment externally,and also provides a systematic and quantifiable operational framework for the sustainable development of enterprises internally.However,under the different motivation,the relationship between ESG performance and corporate financial asset allocation behavior may be different,and the motivation of enterprises for good ESG performance is often difficult to distinguish between true and false,and corporate financial asset investment will also present the "precautionary savings" motivation that serves the real economy and the "investment substitution" motivation that hinders the development of the real economy.Starting from the perspective of corporate ESG performance,this paper expands the motivation identification theory of corporate financialization.Taking A-share listed companies from 2011 to 2020 as a sample,the impact of ESG performance on corporate financial asset investment was explored,and the leading motivation for corporate financialization was determined.On this basis,the distinction between true and false ESG is made from the perspectives of earnings management,financing constraint and information asymmetry,and the differences in the motivation of corporate financialization are explored.The main conclusions of this paper include: First,ESG performance promotes corporate financialization,and corporate financial asset investment is dominated by the negative motivation of "investment substitution".Second,compared with non-state-owned enterprises,the "investment substitution" motivation of enterprise financialization will be weakened,but the difference in internal and external supervision degree has no significant impact on the motivation of enterprise financialization.Third,for companies with a high degree of earnings management,a higher degree of financing constraints,and a high degree of information asymmetry,the negative motivation of "investment substitution" dominates,because it is more likely to be a pseudo-ESG with inconsistent words and deeds and short-term profit-seeking.However,companies with a low degree of earnings management and low degree of information asymmetry do not have a significant relationship.According to the research conclusions,this paper puts forward targeted suggestions for enterprise management,external investors and relevant policy and regulatory departments.