A Study of LYFEN's ESG Disclosure and Its Impact on Corporate Performance

Abstract

Environmental, social and governance (ESG) is an important criterion for evaluating non-financial indicators of corporate performance, which provides substantial support for promoting corporate’s green transformation. This paper investigates the impact of ESG disclosure on corporate performance by using the social responsibility report issued by Shanghai Laiyifen Co., Ltd and the company’s financial data from 2019 to 2022, as well as data up to the end of September 2023 as the basis for analysis. The results show that there is a high correlation between ESG rating scores and corporate performance. Companies that score higher on ESG indicators tend to perform better financially, indicating that a focus on sustainability and responsible business practices can drive value creation. In addition, detailed and in-depth disclosure of ESG information helps to enhance corporate value. These findings deepen the understanding of how ESG disclosure affects corporate performance and provide theoretical support for companies and investors who seek valuable guidance.