The Influence Mechanism of ESG on Corporate Financial Performance from the Perspective of High-Quality Development

DOI: https://doi.org/10.62517/jel.202414501

Author(s)

Yuxi Wei*, Junliang He

Affiliation(s)

Guilin University of Electronic Technology, Guilin, Guangxi, China *Corresponding Author.

Abstract

The Environmental, Social and Governance (ESG) concept is highly compatible with the development goal of accelerating the construction of a new development pattern and focusing on promoting high-quality development. ESG index focuses on evaluating the development of enterprises from multiple dimensions, not only focusing on the economic benefits obtained by enterprises, but also evaluating the performance of enterprises in three dimensions: environmental responsibility, social contribution, and corporate governance. It comprehensively discloses more effective and less asymmetric information to society and stakeholders. The financial index refers to the index of enterprise operation ability, debt paying ability, development ability and profitability. This study takes the four financial indicators as explained variables, and focuses on and studies the mechanism by which ESG scores can improve the performance of enterprises and apos; financial indicators. Choosing enterprise financial index as the standard to measure enterprise development is to visualize enterprise development and effectively combine ESG index and enterprise development, so as to achieve the purpose of research and provide academic insights and new development ideas for current enterprise development.

Keywords

Financial Indicators; The Environmental; Social and Governance; High-Quality Development; Mechanism Research

References

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