Is ESG a New Trick for the Chinese Stock Market? An Empirical Analysis of the Relationship Between Corporate ESG and Financial Performance

Xiaoli Zhao

doi:10.54254/2754-1169/28/20231269

Research Article

Open access

Published on 10 November 2023

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Zhao,X. (2023). Is ESG a New Trick for the Chinese Stock Market? An Empirical Analysis of the Relationship Between Corporate ESG and Financial Performance. Advances in Economics, Management and Political Sciences,28,1-12.

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Is ESG a New Trick for the Chinese Stock Market? An Empirical Analysis of the Relationship Between Corporate ESG and Financial Performance

Xiaoli Zhao *^,1,

¹ Shanghai Soong Ching Ling School

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/2754-1169/28/20231269

Abstract

As an essential indicator to measure corporate financial performance and social responsibility, ESG has been widely used in theory and practice. This paper uses the data of listed companies combined with the least square regression test, a multidimensional empirical test of the impact of ESG on corporate financial performance. The results demonstrate that ESG has a differentiated impact on different financial indicators such as ROA (returns on assets), ROE (returns on equity), and Tobin's Q index, implying that the impact of ESG is relatively complex. Based on this, this paper puts forward some suggestions hoping to provide some references for enterprises to improve their financial performance and promote sustainable development.

Keywords

ESG, financial performance, least squares regression, ROA, ROE, Tobin’s Q

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References

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Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of the 7th International Conference on Economic Management and Green Development

Conference website: https://www.icemgd.org/

ISBN：978-1-83558-077-6(Print) / 978-1-83558-078-3(Online)

Conference date: 6 August 2023

Editor：Canh Thien Dang

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.28

ISSN：2754-1169(Print) / 2754-1177(Online)

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