ESG IMPACT ON TOBIN'S Q: BUSINESS ENVIRONMENT MODERATION IN CHINESE LISTED CORPORATIONS

Abstract

This study investigates the intricate interplay between Environmental, Social, and Governance (ESG) performance, Tobin's Q, and the external business environment (BEI) within the context of Chinese listed companies. Employing a comprehensive dataset spanning a specific timeframe, our empirical analysis uncovers significant relationships among these critical variables. Our findings indicate a robust positive correlation between ESG performance and Tobin's Q, reaffirming the value-enhancing impact of sustainable practices. Additionally, we unveil the moderating role of the external business environment, with a favorable BEI amplifying the positive link between ESG performance and Tobin's Q. Theoretical contributions highlight the importance of external contextual factors in shaping these relationships. From a practical standpoint, our insights guide corporate strategies and inform policy considerations. However, this research carries limitations related to sample size, data quality, endogeneity concerns, and causal inference. Despite these limitations, this study contributes to the evolving discourse on ESG, Tobin's Q, and the broader business environment.