Empirical Study on the Impact of ESG Performance on Financial Performance in the Manufacturing Sector

Wei He (), Rujie Liu (), Tao Han (), Jicheng Zhang (), Yixun Lei (), Shan Xu (), Hongwei Yu () and Zhu Li ()
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Wei He: Three Gorges Electric Power Co., Ltd.
Rujie Liu: Three Gorges Electric Power Co., Ltd.
Tao Han: Three Gorges Electric Power Co., Ltd.
Jicheng Zhang: Three Gorges Electric Power Co., Ltd.
Yixun Lei: Three Gorges Electric Power Co., Ltd.
Shan Xu: Three Gorges Electric Power Co., Ltd.
Hongwei Yu: Wuhan University, Institute of Quality Development Strategy
Zhu Li: Wuhan University, Electronic Information School

A chapter in Proceedings of the 2024 6th Management Science Informatization and Economic Innovation Development Conference (MSIEID 2024), 2025, pp 221-239 from Springer

Abstract: Abstract In the context of intense global competition, ESG standards are crucial for sustainable development. This study examines the impact of ESG performance on the financial performance of A-share listed manufacturing companies in China from 2009 to 2022 using Ordinary Least Squares (OLS) regression, Fixed Effects models, and Instrumental Variable (IV) techniques. The results show that ESG performance significantly enhances financial performance, primarily through improved resource efficiency, government subsidies, and brand value. High-tech industries and companies in eastern and central China benefit more. This study provides empirical data and insights for strategic decision-making and policy formulation.

Keywords: ESG performance; financial performance; Empirical analysis; Manufacturing enterprises; Resource efficiency (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-676-5_23

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DOI: 10.2991/978-94-6463-676-5_23

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