How ESG Practices Enhance Firm Value: A Case Study of Yankuang Energy
DOI:
https://doi.org/10.54097/hhyshb67Keywords:
ESG practices, firm value, financial indicators analysis, Z-score model, EVA.Abstract
With the rise of the ESG investment philosophy in recent years, people have begun to pay attention to company's ESG performance. At the same time, with China's dual carbon policy proposal, energy companies are facing enormous environmental pressure in the production process. For energy companies, the marginal benefits of excellent ESG performance will be greater than those of other industry companies. Under this background, this paper takes Yankuang Energy, a coal company, as an example and uses financial indicator analysis methods, the Z-score financial crisis model, and the EVA economic value-added method to explore how the energy company's ESG practices can improve its firm value. The research has found that in terms of financial performance, ESG practices mainly enhance the firm value by improving its profitability.
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