ESG and Firm Performance: A Literature Review

Abstract

With the slowdown of global economy and the transformation of China economy, the application of ESG is becoming more and more important for the future development of enterprises all around the world. How enterprises influence short-term and long-term performance through ESG has become the focus of academic attention. ESG refers to Environmental, Social, and Governance. It is an investment concept and enterprise evaluation standard that focuses on corporate environmental, social and corporate governance performance. This paper summarizes the relationship between ESG and enterprise performance. Secondly, it analyzes the studies on ESG disclosure and its quality and performance. Finally, it summarizes some literatures related to ESG performance and enterprise comprehensive performance and makes comments.