ESG Performance,Institutional Investors’ Shareholding And Enterprise Value

With the proposal of the goal of "carbon peaking and carbon neutralization" in China,the environment,society and corporate governance(ESG)have been widely concerned and valued by the whole society,and the ESG investment concept has been recognized by mainstream institutional investors,even retail investors.The relationship between enterprise ESG performance,institutional investor shareholding and enterprise value has become a problem worthy of consideration.This paper selects the data of Shanghai and Shenzhen A-share listed companies from 2015 to 2021,and uses the panel model to empirically test the relationship between enterprise ESG performance and enterprise value,the relationship between enterprise ESG performance and institutional investors’ shareholding ratio,and the intermediary effect of institutional investors’ shareholding ratio in the relationship between enterprise ESG performance and enterprise value,and carries out heterogeneity analysis at the levels of institutional investors,enterprise industry,property right nature and scale.The results show that:(1)the better the performance of enterprise ESG,the higher the enterprise value;(2)The better the performance of enterprise ESG,the higher the proportion of institutional investors;(3)The shareholding ratio of institutional investors plays a part of the intermediary effect in the relationship between ESG performance and enterprise value.The existence of independent institutional investors positively promotes the positive impact of ESG performance on enterprise value,while the existence of non-independent institutional investors inversely suppresses the positive impact of ESG performance on enterprise value.The above conclusions are robust.Further research shows that the value creation function of ESG and the intermediary effect played by the shareholding ratio of institutional investors are heterogeneous in polluting enterprises and non polluting enterprises,state-owned enterprises and non-state-owned enterprises,as well as large-scale enterprises and small-scale enterprises.The total effect of ESG performance of polluting enterprises on the improvement of enterprise value is smaller than that of non polluting enterprises,and the total effect of ESG performance of state-owned enterprises on the improvement of enterprise value is not significant,The total effect of ESG performance of small-scale enterprises on the promotion of enterprise value is not significant,and the intermediary effect is not significant.Based on this,this paper proposes to improve the ESG information disclosure system,improve the quality of ESG information disclosure,and optimize the ESG evaluation system;Incorporate ESG into enterprise strategy and improve enterprise ESG performance;Seize ESG investment opportunities and adjust investment philosophy.