An Empirical Analysis of ESG Performance Impact on Corporate Value: A Before-and-After Comparison Based on Code of Governance for Listed Companies
DOI:
https://doi.org/10.54097/wah4wv12Keywords:
ESG Performance, Corporate Value, Code of Governance for Listed Companies, Industry-Adjusted Tobin's Q.Abstract
The impact of ESG performance on corporate value is one of the key research topics in today's research. Researchers have found that there is a significant correlation between ESG performance and corporate value, however, there is still a research gap on the mechanism of specific policies affecting ESG performance on corporate value, and there is still a lack of unified interpretation and cognition. Therefore, it is of great significance to deeply explore the specific impact path and effect of ESG performance on corporate value in the policy context to improve corporate governance and promote sustainable development. This study conducts a regression analysis of corporate ESG performance and corporate value based on the specific time of policy issuance. Explore the impact of ESG performance on corporate value over time. The study finds that in the long run, corporate ESG performance has a significant impact on corporate value, and it is particularly noteworthy that since the implementation of the revision of the Code of Corporate Governance for Listed Companies in 2019, the impact of ESG performance on corporate value has changed significantly, from a non-significant correlation to a clear positive correlation. This shift may be due to the increasing emphasis on sustainability and environmental, social and governance (ESG) factors among investors and the market, prompting companies to strengthen their ESG practices, which in turn increases their market value and social acceptance.
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