An Empirical Study of ESG’s Influence on Firm Performance
DOI:
https://doi.org/10.54097/10mb7088Keywords:
ESG; ROA; Enterprises; Regions; Property Rights; Market Competition.Abstract
ESG performance is increasingly seen not only as a moral obligation but also as a key driver of business success and financial performance. This paper selects data from China's Shanghai and Shenzhen A-share listed companies from 2012 to 2023, uses the ESG scores of Huazheng and CNRDS to measure their ESG performance, and uses the multivariate linear regression method to empirically test the relationship and impact between ESG performance and corporate ROA performance. The test results confirm that excellent ESG performance can boost the ROA performance of enterprises. Moreover, corporate environmental responsibility (E), corporate social responsibility (S) and corporate governance (G) all have a significant promoting effect on corporate ROA performance. In addition, the ESG performance of enterprises in the mid-western regions, non-state-owned enterprises and enterprises with fierce market competition has a more significant positive impact on ROA performance. This paper enriches the existing literature in the field of ESG, and the research conclusions help provide a theoretical basis for enterprises to improve ROA by improving ESG performance.
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