Analysis of the Impact of ESG on Corporate Financial Performance under the Epidemic Based on Static and Dynamic Panel Data. (1st September 2022)

• Record Type: Journal Article
• Authors: Gao, Weizhen; Li, Menggang; Zou, Chengzhang
• Other Names: Hashmi Mohammad Farukh Academic Editor.
• Is Part Of: Wireless communications and mobile computing. Volume 2022(2022)
• Publication Date: 2022-09-01
• Subjects: Wireless communication systems -- Periodicals; Mobile communication systems -- Periodicals; 621.38205
• DOI: 10.1155/2022/6851518
• Languages: English
• ISSNs: 1530-8669

Abstract

Abstract : Listed firms all over the globe are moving their focus from short-term profit maximization to long-term environmental, social, and governance (ESG) objectives. Most business leaders are now cognizant of the growing importance of ESG concerns, which may have an effect on an organization's financial health as well as its reputation in the marketplace. A recent study found that countries with strong ESG performance may be able to improve their financial performance. Yet, in China, the subject of "how does ESG impact financial performance" has received little attention. In this paper, we examine the link between ESG operations and financial indices in China's publicly traded firms using dynamic and static panel data analysis. We begin by gathering financial data and preprocessing it using z -score normalization. The consequence of ESG variables on the financial performance of the company under the pandemic was investigated using statistical analytic techniques such as the Pearson correlation test, logistic regression model, and Fisher's exact test. Due to the study's dynamic and static data, comprehensive ESG has a considerable influence on corporate value and profitability per share. The impact of ESG variables on the financial performance of the company in the event of a pandemic was analyzed using analytical methods such as Pearson correlation, logistic regression, and Fisher's exact test. Performance in ESG may boost financial performance, which could impact investors, business administrators, decision-makers, and industry regulations.