Recent Developments in Research on the Impact of ESG on Corporate Value

Abstract

ESG (Environmental, Social, and Governance) has become an increasingly prominent topic in the investment field. Questions such as whether ESG can create value for companies, the credibility of ESG investments, and whether ESG should be incorporated into my long-term investment plan are crucial considerations. Many scholars have conducted research from various perspectives to address these questions. This article summarizes relevant literature and answers the impact of ESG on corporate value and the factors influencing ESG's impact on corporate value. The research findings are as follows: 1.ESG has a generally positive impact on corporate value, with some factors showing inhibitory effects or no significant correlation.2.ESG primarily affects corporate value through aspects such as market valuation, financing costs, innovation capability, and reputation. 3. The impact of ESG on corporate value varies depending on the ownership structure and industry of the company. Based on these findings, companies should decide whether to enhance their ESG performance based on various factors such as their operational situation, industry composition, and ownership structure.