ESG Performance and Capital Investment
DOI:
https://doi.org/10.54097/ajmss.v2i1.6501Keywords:
ESG Performance, Capital Investment, Financing ConstraintsAbstract
With the introduction of the double carbon goal in recent years and the construction of the national sustainable development management system, this paper empirically studies the impact of ESG performance on corporate investment based on 4044 A-share listed companies in China from 2009 to 2020. The results present that there is a significant negative correlation between ESG rating performance and corporate capital expenditure. The better the ESG performance of enterprises, the less capital expenditure of enterprises. Further analysis shows that due to resource constraints, enterprises have a crowding-out effect on investment activities while practicing ESG social responsibility. This study provides empirical evidence for enriching the economic consequences of ESG performance, and has certain implications for decision makers and investors to guide, supervise and improve ESG incentive policies.
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