Abstract
ESG investment is an investment strategy or investment method that incorporates environmental responsibility, social responsibility and corporate governance into the scope of investment measurement. Implementation of ESG disclosure is one critical measure to achieve carbon neutrality and emission peak in China. While main researches these days mainly focus on the relationship between ESG and enterprise value, few researches study that between ESG disclosure and stock price returns. This paper selects Huazheng ESG rankings in companies listed in Shenzhen Stock Exchange, stock price yearly returns from 2009 to 2020 and adopts OLS method to test the effect of ESG disclosure on stock price performance. Empirical results indicate a positive relationship between them. ESG investment is in its infancy in China, which is not a widespread indicator in Chinese investors. Forge corporate social responsibility, adhere to the concept of sustainable development. It suggests that the firms need to improve corporate governance mechanism and innovate governance methods to standardize ESG evaluation indicators and promote the application of ESG investment in Chinese financial market.
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Lin, L. (2023). The Effect of ESG Disclosure on Stock Performance: Empirical Evidence from China. In: Dang, C.T., Cifuentes-Faura, J., Li, X. (eds) Proceedings of the 2nd International Conference on Business and Policy Studies. CONF-BPS 2023. Applied Economics and Policy Studies. Springer, Singapore. https://doi.org/10.1007/978-981-99-6441-3_18
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DOI: https://doi.org/10.1007/978-981-99-6441-3_18
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