The Mechanism of the Impact of ESG Performance on the Financial Performance of Environmentally Sensitive Enterprises

Abstract

Based on the data of A-share listed companies in Shanghai and Shenzhen from 2012 to 2021, this paper tests the impact mechanism of ESG performance on the financial performance of environmentally sensitive enterprises under the mesomeric effect of green technology innovation by establishing a panel regression model. The research results indicate that there is a significant negative correlation between ESG performance and financial performance of environmentally sensitive enterprises, meaning that companies with better ESG performance tend to have lower financial performance. Green technological innovation plays a part of the mesomeric effect between the two. The research results provide important ideas and methods for environmentally sensitive enterprises to promote their financial performance in achieving high-quality economic development, and provide a theoretical basis for promoting the development of ESG and green technology innovation in China.