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Research on ESG Investment Efficiency Regulation from the Perspective of Reciprocity and Evolutionary Game

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  • Yinglin Wang

    (Fujian Agriculture and Forestry University
    Xiamen University)

  • Leqi Chen

    (Fujian Agriculture and Forestry University)

  • Jiaxin Zhuang

    (Fujian Agriculture and Forestry University)

Abstract

According to the information disclosure quality and investment return efficiency of ESG enterprises, this paper establishes a dynamic incentive mechanism based on return regulation considering the reciprocal preferences of enterprises and investors. The strategy evolution path of ESG enterprises is explored from the perspective of external regulation in the investment market. The evolutionary game analysis of ESG investment returns in five scenarios shows that the increase in reciprocal preferences of investors and ESG enterprises will promote enterprises to make high efforts to improve the quality of information disclosure and credit rating behavior. However, with the increase of project return, the degree of reciprocity of investors should be appropriately adjusted, otherwise it is easy to cause speculation of ESG enterprises. In the case of heterogeneous returns, the effects of positive and negative incentives differ greatly, so the incentive mechanism should be set to match the return state of ESG investments.

Suggested Citation

  • Yinglin Wang & Leqi Chen & Jiaxin Zhuang, 2024. "Research on ESG Investment Efficiency Regulation from the Perspective of Reciprocity and Evolutionary Game," Computational Economics, Springer;Society for Computational Economics, vol. 64(3), pages 1665-1695, September.
    • Handle: RePEc:kap:compec:v:64:y:2024:i:3:d:10.1007_s10614-023-10494-0
    DOI: 10.1007/s10614-023-10494-0
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