Author: by Changhong Zhao, Yu Guo, Jiahai Yuan, Mengya Wu, Daiyu Li, Yiou Zhou and Jiangang Kang
Summary:
Nowadays, listed companies around the world are shifting from short-term goals of maximizing profits to long-term sustainable environmental, social, and governance (ESG) goals. People have come to realize that ESG has become an important source of the corporate risk and may affect the companys financial performance and profitability. Recent research shows that good ESG performance could improve the financial performance in some countries. Yet, the question of œhow does ESG affect financial performance has not been thoroughly discussed and studied in China. In this article, we study Chinas listed power generation groups to explore the relationship between ESG performance and financial indicators in the energy power market based on the panel regression model. The results show that good ESG performance can indeed improve financial performance, which has significant meanings for investors, company management, decisionmakers, and industry regulators. View Full-Text
