ESG and Corporate Financial Performance: Empirical Evidence from China’s Listed Power Generation Companies

By Changhong Zhao, Yu Guo, Jiahai Yuan, Mengya Wu, Dai Li, Yiou Zhou, Jian-gang Kang. Sustainability, 2018

392 citations recorded by the source corpus.

Nowadays, listed companies around the world are shifting from short-term goals of maximizing profits to long-term sustainable environmental, social, and governance (ESG) goals. People have come to realize that ESG has become an important source of the corporate risk and may affect the company’s financial performance and profitability. Recent research shows that good ESG performance could improve the financial performance in some countries. Yet, the question of “how does ESG affect financial performance” has not been thoroughly discussed and studied in China. In this article, we study China’s listed power generation groups to explore the relationship between ESG performance and financial indicators in the energy power market based on the panel regression model. The results show that good ESG performance can indeed improve financial performance, which has significant meanings for investors, company management, decisionmakers, and industry regulators.

Subfields: Economics and Econometrics, Marketing, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/0249982d028910602f6045a5ac0ea5feadea6740

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

1. Iwona Bak
2. Noor Azlinna Azizan
3. Lei Ruan
4. M. Zioło
5. Beata Zofia Filipiak
6. Katarzyna Cheba
7. Irene Wei Kiong Ting
8. Heng Liu

In Marketing

1. Noor Azlinna Azizan
2. Lei Ruan
3. Irene Wei Kiong Ting
4. Sujithra Sukumaran
5. Heng Liu
6. R. Bhaskaran

In Strategy and Management

1. Noor Azlinna Azizan
2. Lei Ruan
3. Irene Wei Kiong Ting
4. Sujithra Sukumaran
5. Heng Liu
6. R. Bhaskaran

Citations in the corpus

• Environmental, Social, Governance Activities and Firm Performance: Evidence from China (2021, methodology): “As the SynTao Green Finance ESG rating indicator has been widely used in the research of Chinese ESG issues [30,56], the use of this indicator also ensured the comparability of the conclusions of this article.”
• How to Design More Sustainable Financial Systems: The Roles of Environmental, Social, and Governance Factors in the Decision-Making Process (2019, background): “Banks’ internal regulations also show that environmental risk must be taken into account with respect to their own ethical guidelines, prestige, and reputation risk [19,20].”
• Corporate Social Performance and Firm Performance: Comparative Study among Developed and Emerging Market Firms (2019, background): “Firms often advertise their corporate social responsibility (CSR) activities and publish formal reports of CSR accomplishments [2].”