Proceedings of the 5th Management Science Informatization and Economic Innovation Development Conference, MSIEID 2023, December 8–10, 2023, Guangzhou, China

Research Article

ESG and Corporate Financial Performance: The Mediating Role of Stock Liquidity

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  • @INPROCEEDINGS{10.4108/eai.8-12-2023.2344788,
        author={Minxue  Gong and Kunkun  Lu},
        title={ESG and Corporate Financial Performance: The Mediating Role of Stock Liquidity},
        proceedings={Proceedings of the 5th Management Science Informatization and Economic Innovation Development Conference, MSIEID 2023, December 8--10, 2023, Guangzhou, China},
        publisher={EAI},
        proceedings_a={MSIEID},
        year={2024},
        month={4},
        keywords={esg; financial performance; stock liquidity; institutional shareholding},
        doi={10.4108/eai.8-12-2023.2344788}
    }
    
  • Minxue Gong
    Kunkun Lu
    Year: 2024
    ESG and Corporate Financial Performance: The Mediating Role of Stock Liquidity
    MSIEID
    EAI
    DOI: 10.4108/eai.8-12-2023.2344788
Minxue Gong1,*, Kunkun Lu1
  • 1: Shenzhen University
*Contact email: gentlegmx@163.com

Abstract

This study discusses the effect of ESG performance on corporate financial performance using a sample of Chinese non-financial listed companies from 2009 to 2021. Through empirical analysis from the standpoint of the external information environment, the study demonstrates that enhancing ESG performance leads to improved financial performance, and this relationship is mediated by stock liquidity. Moreover, the positive effect of ESG performance on financial performance is more pronounced in companies with a higher proportion of institutional investors' shareholding.