Research on the Impact of ESG Performance on Corporate Value in Listed Companies
DOI:
https://doi.org/10.54097/n0b3yn08Keywords:
ESG Performance, Firm Value, Stock Returns, Risk PremiumAbstract
Against the backdrop of the deepening global sustainability concept, ESG (Environmental, Social, and Governance) has transcended the boundaries of traditional corporate social responsibility, evolving into a core analytical tool for assessing a company's long-term value creation capacity and sustainable development efficacy. To explore the impact of listed companies' ESG performance on corporate value, this study adopts a risk premium perspective, utilizing data from China's A-share market between June 2019 and December 2024, along with the ESG evaluation system of the China Securities Index Co., Ltd. and the CSMAR database. It conducts an in-depth analysis of the risk premium characteristics of listed companies' ESG performance. By employing empirical methods such as univariate portfolio analysis and panel regression models, while controlling for industry and time fixed effects, the study verifies the existence of ESG risk premiums in China's A-share market. The empirical results reveal that companies with superior ESG performance exhibit lower stock return premiums. Further analysis indicates that this risk premium primarily stems from the reduced environmental, policy, and reputational risks associated with high ESG performers, leading to correspondingly lower risk compensation demanded by investors.
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