ESG performance and corporate value creation efficiency: Evidence from China

Qunli Qiang, Sijia Li, Lingmei Meng and Yuan Lei

Finance Research Letters, 2025, vol. 81, issue C

Abstract: We investigate the impact of ESG performance on corporate value creation efficiency. Using a large sample of Chinese A-share listed firms from 2011 to 2023, our findings indicate that enhanced performance in Environmental, Social, and Governance (ESG) contributes to improving efficiency in corporate value creation. We also find that the improvement is primarily achieved through the mitigation of corporate risks. From the dynamic perspective of corporate life cycle, the positive impact of ESG performance on corporate value creation efficiency is particularly significant in mature enterprises. However, this beneficial effect tends to diminish in organizations that are experiencing a recession.

Keywords: ESG performance; Corporate value creation efficiency; Corporate risk; Corporate life cycle (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:81:y:2025:i:c:s1544612325006579

DOI: 10.1016/j.frl.2025.107397

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