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eISSN: 2083-5906
ISSN: 1230-1485
ISSN: 1230-1485
ORIGINAL RESEARCH
Research on the Impact of ESG Performance
on Firm Value
1
School of Public Administration, Sichuan University, Sichuan, Chengdu, China
2
School of Management, University of Science and Technology of China, Hefei, Anhui, China
3
School of Public Finance and Management, Yunnan University of Finance and Economics, Yunan, Kunming, China
4
School of Advanced Manufacturing and School of Marine Sciences, Fuzhou University, Fujian, Jinjiang, China
These authors had equal contribution to this work
Submission date: 2024-11-17
Final revision date: 2025-03-12
Acceptance date: 2025-05-24
Online publication date: 2025-09-12
Corresponding author
Jiajin Gu
School of Advanced Manufacturing and School of Marine Sciences, Fuzhou University, Fujian, Jinjiang, China
School of Advanced Manufacturing and School of Marine Sciences, Fuzhou University, Fujian, Jinjiang, China
KEYWORDS
TOPICS
ABSTRACT
With the growing global focus on sustainable development, the recognition of Environmental,
Social, and Governance (ESG) principles continues to expand. Aligned with the “dual-carbon” goal,
ESG performance has become a critical factor in corporate strategic decision-making, driving listed
companies to integrate ESG strategies for long-term value creation. This study examines the impact
of ESG performance on firm value and its underlying mechanisms using data from China's A-share
listed manufacturing firms from 2011 to 2023. The results indicate that: (1) ESG performance has
a significant positive impact on firm value, a conclusion that remains robust across multiple sensitivity
and robustness tests. (2) Mechanism analysis indicates that ESG performance enhances firm value
primarily by increasing organizational visibility. (3) Executive incentives positively moderate the
relationship between ESG performance and firm value, further amplifying the value-enhancing effect
of ESG performance. (4) Heterogeneity analysis suggests that ESG performance has a stronger impact
on firm value in non-state-owned firms, non-heavily polluting sectors, businesses in regions with high
marketization, and firms facing weaker environmental regulatory constraints. This study provides
empirical evidence to guide policymakers and corporate managers in effectively integrating ESG
strategies to promote sustainable development alongside financial performance.
CONFLICT OF INTEREST
The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.
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CITATIONS (3):
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