The Impact of ESG Performance of China’s Manufacturing Listed Companies on Corporate Value Assessment

Abstract

Studies of ESG have been enriched here and abroad. The concept has also become a global mainstream in both company management and investments and will exert a huge influence on the transformation of China’s manufacturing industries. Using extensive data from Chinese A-share manufacturing companies from year 2016 to 2020, this paper explores how the overall ESG performance contributes to corporate value. The results indicate that the relationship is as positive as speculated by the hypothesis, but in the regional analysis, the positive relationship is more robust in areas with low market levels than in those with high levels. According to these, companies are suggested to keep on implementing this concept to improve their value, while investors should identify and invest in manufacturing companies of ESG potential, promoting a sharing of economic, environmental and social benefits.