The Impact of ESG Performance on Corporate Value of Chinese Companies

This study examined the influence of ESG performance on the firm value of Chinese equipment manufacturing companies over the period from 2011 to 2020. The analysis indicated that while ESG performance exerted a negative influence on firm value, this impact was not statistically significant. These fi...

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Bibliographic Details
Published inInternational Journal of Advanced Culture Technology(IJACT) Vol. 11; no. 3; pp. 33 - 38
Main Author Heonyong Jung
Format Journal Article
LanguageEnglish
Published 국제문화기술진흥원 30.09.2023
Subjects
과학기술학
Corporate Value
Stakeholder Theory
ESG Performance
Chinese Company
Sustainability
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Summary:This study examined the influence of ESG performance on the firm value of Chinese equipment manufacturing companies over the period from 2011 to 2020. The analysis indicated that while ESG performance exerted a negative influence on firm value, this impact was not statistically significant. These findings substantiate the Institutional Difference Hypothesis (IDH), which posits that country-specfic institutional variations sifnificantly shape the strategic decision-making of organizations. When disaggregating the three components of ESG, variations in the results were observed both for overall ESG performance and for each individual dimension. Of the three dimension elements, the environmental (E) and governance (G) facets had a negative bearing, whereas the social (S) facet had a positive influence. Notably, only the governance dimension (G) demonstrated a statistically significant influence. These outcomes affirm the institutional difference hypothesis, illustrating divergent results across distint ESG dimensions.
ISSN:2288-7202
2288-7318
DOI:10.17703/IJACT.2023.11.3.33