Research on the Mechanism of ESG Performance's Impact on Enterprise Value

Zhiyun Cheng; Linjia Zhang; Deyu Li

doi:10.54691/6f0efn70

Research on the Mechanism of ESG Performance's Impact on Enterprise Value

Zhiyun Cheng, Linjia Zhang, Deyu Li

Frontiers in Science and Engineering, (2024), Vol.4, No.4, pp.6-17

Published: April 30, 2024

DOI: 10.54691/6f0efn70

PDF: Download Full Text PDF

Abstract

Clarifying the impact of enterprise ESG performance on enterprise value from multiple perspectives plays an important role in promoting the development of new quality productivity. This article is based on data from Chinese listed companies from 2013 to 2022, and from the perspective of corporate governance, examines the intrinsic relationship between corporate ESG performance and corporate value generation. Using the first type of agency cost as an intermediate variable, it analyzes the impact path of "ESG performance corporate governance corporate value". The results indicate a significant positive correlation between corporate ESG practice performance and corporate value. There is a significant negative correlation between corporate ESG practice performance and agency costs; The improvement of ESG practice performance can enhance enterprise value by reducing agency costs. The study provides empirical evidence for the positive impact of ESG practices on corporate value for Chinese listed companies, increasing the attention of enterprises, investors, and governments to ESG, and encouraging enterprises to achieve the goal of enhancing corporate value through participation in ESG practices and other means.

Keywords: ESG Corporate; Governance Enterprise; Value Agency Costs.

APA Citation: Zhiyun Cheng, Linjia Zhang, Deyu Li (2024). Research on the Mechanism of ESG Performance's Impact on Enterprise Value. Frontiers in Science and Engineering, 4(4), 6-17. https://doi.org/10.54691/6f0efn70

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