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The effect of ESG on enterprise value under the dual carbon goals: From the perspectives of financing constraints and green innovation

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  • Qian, Simeng

Abstract

Environmental, Social, and Governance (ESG) is an important criterion for evaluating non-financial indicators of firm performance, offering substantial support for advancing green transformation. This paper examines the impact of ESG performance on enterprise value using data from 3139 Chinese A-listed companies spanning from 2010 to 2021. The results demonstrate that enhancing ESG performance significantly boosts enterprise value. Additionally, ESG initiatives can alleviate corporate financing constraints and stimulate green innovation, consequently driving enterprise value. Furthermore, the positive effect of ESG on enterprise value is more pronounced for non-state-owned enterprises, low-polluting enterprises, and small-scale enterprises. These findings deepen our understanding of how ESG influences enterprise value within the context of the dual-carbon goal, offering theoretical backing for companies and investors to bolster ESG management practices and aiding government efforts to enhance ESG macro guidance.

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  • Qian, Simeng, 2024. "The effect of ESG on enterprise value under the dual carbon goals: From the perspectives of financing constraints and green innovation," International Review of Economics & Finance, Elsevier, vol. 93(PA), pages 318-331.
    • Handle: RePEc:eee:reveco:v:93:y:2024:i:pa:p:318-331
    DOI: 10.1016/j.iref.2024.03.010
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    1. Yuechen Wu, 2024. "Does ESG Consistently Promote the Corporate Financial Performance? A Study of the Global Cruise Industry," Papers 2409.00758, arXiv.org.
    2. Han, Wei & Wu, Di, 2024. "ESG ratings, business credit acquisition, and corporate value," International Review of Financial Analysis, Elsevier, vol. 95(PA).
    3. Guo, Kun & Li, Yichong & Zhang, Yunhan & Chen, Yingtong & Ma, Yanran, 2024. "Cross-country risk spillovers of ESG stock indices: Dynamic patterns and the role of climate transition risks," International Review of Financial Analysis, Elsevier, vol. 95(PB).
    4. Yu Chen & Shuangshuang Liu & Yanqiu Xiao & Qian Zhou, 2024. "Can Digital Transformation Reduce Enterprise Carbon Intensity? An Empirical Analysis of Chinese Manufacturers," Sustainability, MDPI, vol. 16(12), pages 1-19, June.

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