The Impact of ESG Disclosure on Corporate Financial Performance: A Case Study of Kweichow Moutai

Abstract

In recent years, ESG has gradually gained attention from both the government and enterprises. Concepts such as green finance and the national dual carbon initiative have been proposed, and people are increasingly aware that good ESG information disclosure can, to some extent, eliminate information asymmetry between internal and external stakeholders of a company, thereby facilitating positive decision-making by investors. Conversely, poor ESG information disclosure is likely to affect a company's market performance, as evidenced by Moutai's stock price plummeting when its ESG rating was downgraded to the lowest level in 2021, while its market performance improved after optimizing carbon information disclosure. This study selects data from 2021 to 2024 and employs methods such as short-term event study and accounting indicators method to investigate the impact of the quality of ESG information disclosure on corporate financial performance. Research indicates that carbon information disclosure has a significant impact on corporate stock prices in the short term and will also affect various financial indicators of the company to a certain extent in the long term, collectively influencing corporate financial performance.