Abstract
Environmental, social and governance (ESG) investing suggests that a companys financial investments should not only consider economic returns and financial indicators, but also assess the combined environmental, social and wider stakeholder impacts of corporate activities and investment behaviour. Enhancing corporate value is one of the ultimate goals of ESG practice. The purpose of this paper is to examine whether there are sectoral differences in ESG practices across industries and to explore the relationship between corporate sustainability and ESG investments. Three representative ESG rating agencies ratings of China's domestic listed enterprises from 2017-2021 were collected, and the top 5% of enterprises (eight in total) were selected as a comprehensive sample to assess their sustainability, and the following conclusions were drawn: (1) there are sectoral differences in ESG investment, with higher ESG ratings in frontier sectors; (2) there is a lag, and there is no short-term correlation between ESG investment and corporate sustainability.
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