Abstract

There is a certain correlation between ESG and corporate performance. ESG considerations are the basis of sustainable investment, and the market has more and more demand for ESG data. Major rating agencies are also paying more and more attention to analyzing ESG information and converting it into quantitative data. Strengthening the management of corporate ESG disclosure, improving ESG ratings, and further improving corporate ESG performance will become the core components of any listed company's strategy and policy. It is crucial to investigate the impact of ESG scores on firms' performance. This article considers information on China's A-share market in 2022 to confirm the effect of ESG scores on companies' performance. The paper finds that ESG score has a positive impact on company performance, which can improve the ROA and ROE of the company. It is important to help CEO and the owners of the company to make the firm's future development strategy.

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