Research Article
An Empirical Study of ESG Performance and Corporate Investment Efficiency -- Moderating Effect of External Pressure
@INPROCEEDINGS{10.4108/eai.6-1-2023.2330311, author={Chunxia Fu and Zhiguang Guo and Luorao Yang}, title={An Empirical Study of ESG Performance and Corporate Investment Efficiency -- Moderating Effect of External Pressure}, proceedings={Proceedings of the 2nd International Conference on Big Data Economy and Digital Management, BDEDM 2023, January 6-8, 2023, Changsha, China}, publisher={EAI}, proceedings_a={BDEDM}, year={2023}, month={6}, keywords={esg performance nature of equity media attention investment efficiency multivariable linear regression model}, doi={10.4108/eai.6-1-2023.2330311} }- Chunxia Fu
Zhiguang Guo
Luorao Yang
Year: 2023
An Empirical Study of ESG Performance and Corporate Investment Efficiency -- Moderating Effect of External Pressure
BDEDM
EAI
DOI: 10.4108/eai.6-1-2023.2330311
Abstract
This paper develops a multiple linear regression model to empirically test the effect of ESG performance on corporate investment efficiency by using the main board-listed companies in Shanghai and Shenzhen A-shares from 2012 to 2020 and using the nature of equity and media attention as the entry point to deeply explore the moderating effect of external pressure on ESG performance and investment efficiency. The results show that ESG performance significantly suppresses inefficient investment, i.e., better ESG performance is associated with higher investment efficiency; however, external pressures on firms, such as the nature of equity and media attention, weaken the effect of ESG performance on investment efficiency. The empirical results of this paper further highlight the existence of specificities in the Chinese capital market, while providing important theoretical insights for the further implementation of ESG practices in China.