The Impact of Perceived Economic Policy Uncertainty on Corporate ESG

Yiran Wang

doi:10.54097/bspc2n61

Authors

Yiran Wang

DOI:

https://doi.org/10.54097/bspc2n61

Keywords:

Economic Policy Uncertainty, Corporate ESG, Corporate Digitalisation, Firm Size

Abstract

The ESG rating system has received more and more attention as an important reference for measuring corporate sustainability, and the external economic environment is considered to be an important factor affecting corporate ESG performance, however the perception of corporate economic policy uncertainty, as an important external economic environment, and how it affects corporate ESG performance has not yet been adequately investigated. This paper uses the annual report data of A-share listed enterprises from 2010 to 2020, and through a two-way fixed effects model, firstly, we carry out a benchmark regression, and then this paper carries out a heterogeneity analysis to explore the differential impact of economic policy uncertainty on enterprises by comparing the ESG scores of enterprises with different characteristics, and the mechanism study finds that economic policy uncertainty can affect the ESG performance of enterprises through the channels of enterprise digitisation and enterprise scale, in which economic policy uncertainty can influence the ESG performance of enterprises through the channels of enterprise digitisation and enterprise scale. ESG performance, in which economic policy uncertainty slows down the process of enterprise digitisation and reduces enterprise ESG performance; economic policy uncertainty cut down enterprise size and reduces enterprise ESG performance.

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