Multivariate Linear Regression Method Based on STATA Analyze The Relationship Between ESG Ratings and Stock Market Performance

With the increasing problems of climate change, environmental pollution, employee conditions, and corporate responsibility. Non-financial indicators are becoming increasingly important for analyzing enterprise value. In recent years, academic research on ESG has been intensifying, but the chain of influence between ESG rating and stock market performance has not been clearly demonstrated. In this article, the author uses a multivariate linear regression method based on STATA to analyze the relationship between ESG rating and stock market performance and how it affects. This paper finds that an increase in ESG rating leads to a decrease in financing constraints, an increase in future risk resistance, and an increase in the company's reputation to obtain a commodity premium. By doing so, the company achieves that a higher ESG rating leads to better financial performance, which ultimately affects the company's stock market performance. This study enriches the literature on the consequences of ESG from the perspective of stock market performance and provides implications for regulatory bodies, investors, and listed firms.