| Creators: |
Steurer, Elmar and Fahling, Ernst J. and Manqi, Zhao |
| Title: |
Empirical research on the impact of ESG performance on the valuation of listed manufacturing companies in China |
| Item Type: |
Article or issue of a publication series |
| Projects: |
Projekt intrinsische Publikationen |
| Journal or Series Title: |
Journal of Financial Risk Management |
| Page Range: |
pp. 396-425 |
| Additional Information: |
Open access |
| Date: |
June 2024 |
| Divisions: |
Wirtschaftswissenschaften |
| Abstract (ENG): |
ESG refers to environmental, social, and corporate governance. The spread of
ESG has become a raging trend in the western countries, and China has also
kept pace with the times. In 2018, it released a new version of the Code of
Governance for Listed Companies which requires Chinese-listed companies
to disclose ESG-related information. Stakeholders such as investors consider
the ESG performance of the company when valuing the company. Thus, this
paper mainly focuses on the impact of ESG performance on the corporate
valuation of China’s listed manufacturing companies. The paper takes Chi
na’s Shanghai and Shenzhen A-share listed manufacturing companies from
2012 to 2022 as a sample, uses a two-way fixed effect method to make an em
pirical analysis to study the impact of ESG performance of China’s listed
manufacturing companies on valuation, and according to high/low polluting
industries and regions, conducts heterogeneity analysis, and finally conducts
a robustness test. The paper’s main conclusions are as follows: firstly, higher
valuations are associated with better ESG performance of China’s listed man
ufacturing companies in Shenzhen and Shanghai A-share; secondly, higher
valuations are associated with better ESG performance of listed manufactur
ing companies in heavily polluting industries, while the improvement of ESG
performance of listed manufacturing companies in low-polluting industries
has relatively weaker impact on valuations; Further for the listed companies
located in the eastern region the evidence is that an improvement of their
ESG performance has a positive impact to their valuation. At last, the paper
puts forward some suggestions for company, society, and government sepa
rately and formulates some search questions for potential future studies. |
| Forthcoming: |
No |
| Language: |
English |
| Uncontrolled Keywords: |
ESG Performance, ESG Impact on Corporate Valuation, ESG Heterogeneity
Analysis, Empirical Research of ESG Performance, Chinese Manufacturing
Companies |
| Link eMedia: |
Download |
| Citation: |
Steurer, Elmar and Fahling, Ernst J. and Manqi, Zhao
(2024)
Empirical research on the impact of ESG performance on the valuation of listed manufacturing companies in China.
Journal of Financial Risk Management, 13 (2).
pp. 396-425.
ISSN 2167-9541
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