The impact of ESG performance on the stock returns of Chinese companies
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This study aims to investigate the impacts of ESG performance on a firm's stock returns. The main controlling variables are the firm's CSR-related costs. Data were collected through comprehensive literature reviews and analyzed using a combination of descriptive statistics and correlation analysis. The results of the study are as follows: The lack of a significant relationship between higher ESG scores and higher mean returns indicates that companies with better ESG performance are more likely to achieve higher financial returns. Investment in the costs associated with CSR does not yield a higher average return. This suggests that the costs incurred in fulfilling social and environmental responsibilities do not translate into financial improvement. Additionally, increasing accounting costs do not lead to a higher average ESG score, indicating that financial resources allocated for accounting and reporting processes do not necessarily improve the company's ESG rating. This study reveals the relationship between ESG performance, CSR investment, and capital market performance, providing a reference for related ESG values.
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