ESG Performance, R&D Investment and Financial Performance: A Case Study of Special Equipment Manufacturing Enterprises

Abstract

The concept of ESG is a brand-new concept that conforms to the trend of the times and is consistent with the realization of the goals of "carbon peak", "carbon neutrality" and sustainable development. This paper selects the data of special equipment manufacturing enterprises listed in A-share companies from 2018 to 2022 as a sample to explore the effect of ESG performance on the financial performance of enterprises, as well as the moderating role of R&D investment in the relationship between the ESG performance of enterprises and the financial performance of enterprises. It is found that (1) the ESG performance of enterprises and the three dimensions of E(Environmental score), S(Social score) and G(Government score), E has a negative effect on the financial performance of enterprises, and the other dimensions can significantly improve the performance of enterprises. (2) For the listed companies in the special equipment manufacturing industry, the enterprises' enhancing R & D investment can to some extent boost the facilitative role of corporate governance in the enterprise's financial performance.