Corporate ESG Performance and Corporate Value

Abstract

In the context of China's green development transformation and high-quality development, it is of great significance to actively promote enterprises to practice the concept of ESG development. In order to study the impact of ESG on enterprise value, this paper empirically examines the impact of ESG performance on enterprise value and its mechanism of action, taking listed companies of enterprises from 2013 to 2023 as the research sample. The research results show that ESG performance can significantly increase enterprise value. The study of the mechanism of action shows that corporate ESG enhances corporate value through digital transformation, promoting corporate innovation, and enhancing financial asset allocation. Heterogeneity analyses find that the positive effect of ESG on firm value shows differences among different types of firms, especially among state-owned enterprises and high-tech firms, where the positive effect of ESG performance on firm value is more significant. The research in this paper enriches the impact of ESG on enterprise value, which is of theoretical and practical significance for enterprises, investors and government to complete.