Corporate Sustainability and Firm Value: Evidence from China
DOI:
https://doi.org/10.54097/fbem.v11i1.12125Keywords:
ESG; Corporate Sustainability; Corporate Value; Tobin’s Q.Abstract
In recent years, sustainable development has become a hot topic globally, and more and more people are realizing the crucial importance of environmental, social, and governance (ESG) factors in corporate decision-making and long-term development. Using the sample from China, we testify whether corporate sustainability have effect on firm value. We find that corporate sustainability improves firm value, as it reduces the information risks and operating risks. ESG is a win-win measure for both regulators and listed firms, therefore there is a shared interest in ensuring that ESG considerations are integrated into business practices. In theory we enrich the literature on the economic conse-quences of corporate sustainability and complement to the literature on deter-minants of firm value. In practical significance, this study provides implica-tions for both government and listed firms to focus on ESG.
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