Research on the Impact Mechanism of ESG Performance on Financial Performance of Real Estate Enterprises: Based on the Dual Perspective of Corporate Credit and Ownership Concentration

Puhe Wang ()
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Puhe Wang: Hefei University of Technology

A chapter in Proceedings of the 4th International Conference on Internet Finance and Digital Economy (ICIFDE 2024), 2024, pp 29-50 from Springer

Abstract: Abstract With the rapid development of ESG concept and the government’s emphasis on sustainable development, real estate enterprises, as an important pillar industry of the national economy, their ESG practices are crucial to enhance their competitiveness, shape their social image and achieve sustainable development. However, most of the existing studies focus on the direct relationship between ESG and corporate financial performance, while ignoring the role of ownership structure and corporate credit level. This paper focuses on the influencing mechanism between ESG performance and financial performance of Chinese listed real estate companies, and uses the data of A-share listed real estate companies from 2016 to 2023 to systematically reveal the internal relationship between ESG performance and financial performance of real estate companies through multiple regression analysis and mediating effect test. The study finds that ESG performance of real estate enterprises is significantly positively correlated with financial performance, while ownership concentration plays a negative moderating role in this relationship, that is, improving ESG performance can promote financial performance, and high ownership concentration may weaken the positive impact of ESG practices. As a mediating variable, corporate credit level positively affects the relationship between ESG performance and financial performance, indicating that good ESG performance can improve financial performance by improving corporate credit level. The research conclusion emphasizes that listed real estate companies need to recognize the positive impact of ESG performance, and formulate strategies to improve ESG management level, while paying attention to the optimization of ownership structure to avoid excessive concentration. The government should strengthen supervision, guide enterprises to pay attention to ESG issues, and optimize the market environment, so as to promote the comprehensive and coordinated development of economy, society and environment.

Keywords: ESG performance; Financial performance; Real estate enterprises; Corporate credit; Concentration of ownership (search for similar items in EconPapers)
Date: 2024
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DOI: 10.2991/978-94-6463-534-8_4

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