A Study of the Impact of ESG on Corporate Performance and Firm Valuation

Weibo Fang

doi:10.54097/qzxk2b75

Authors

Weibo Fang

DOI:

https://doi.org/10.54097/qzxk2b75

Keywords:

Environmental, Social, and Governance; Corporate Valuation; ESG Performance.

Abstract

This study is committed to a thorough examination of the significant effects that environmental, social, and governance (ESG) dimensions have on the worth of businesses. Additionally, obtaining ESG certification holds considerable importance for the valuation of companies. Enterprises certified by the authority ESG can not only prove that they have a high standard and level in ESG, but also improve their brand image and credibility, thus attracting more partners and investors. To grasp the intricacies and significance of this matter fully, it begins with a foundational theoretical approach, delving into the obstacles and dilemmas companies encounter throughout their routine business activities. It also further discusses and studies how ESG performance affects enterprise value. Through the analysis of a large number of data and cases, it is found that those enterprises that actively disclose ESG information can often gain more trust and support from investors, thus improving the market value and position of enterprises. Finally, it finds that although ESG has a positive impact on the stock price of enterprises, it is actually relatively slight, and investors prefer enterprises with better operating conditions in terms of investment choices.

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