Study On The Impact Of Esg Performance On Corporate Financial Performance

In recent years,“Green” development has become an important trend in the development of various industries,and many enterprises have taken green development as an important measure to promote economic development.The ESG concept coincides with the development concept of "Lucian waters and lush mountains are invaluable assets" and the overall layout of "The Five-Sphere Integrated Plan" in China.As an important component of China’s secondary industry,the development of manufacturing industry is facing new situations at a new stage,which plays an important role in promoting China’s economic development.Especially in the important period of low-carbon transformation,the household appliance manufacturing industry needs to adapt to the development of the times and shoulder the major responsibility of green development.The implement of ESG concept in home appliance manufacturing industry helps to improve financial performance while achieving green and sustainable development.This study focuses on the home appliance manufacturing industry and analyzes the impact of ESG performance on financial performance using the theories of sustainable development and stakeholder theory.Through a review and critique of relevant domestic and international literature,as well as empirical analysis,the study employs an empirical analysis method.Firstly,based on relevant concepts and theoretical foundations,literature is reviewed to hypothesize that ESG has a certain promoting effect on the financial performance of the home appliance manufacturing industry.Secondly,quantitative analysis is conducted to analyze the correlation between variables,analyze the regression results and stability test.The test confirms that there is a causal relationship between ESG performance and corporate financial performance,which is positively correlated.Moreover,this positive correlation becomes stronger as the duration of ESG investment increases,thereby driving the improvement of corporate financial performance.Finally,suggested that the home appliance manufacturing industry should implement ESG principles,be accountable to stakeholders,and ultimately achieve sustainable development.The paper enriches sample data on the correlation between household appliance manufacturing industry and financial performance,which can provide effective reference for the development of manufacturing industries to introduce ESG concepts,and has certain enlightenment significance for listed companies to actively assume social responsibility.Due to the differences in the rating methods of many ESG rating agencies,which may also have a certain impact on the research results,the shortcomings of the research are proposed in the final chapter of this article to provide a reference for further research.