Advances in Economics, Management and Political Sciences

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Proceedings of the 3rd International Conference on Business and Policy Studies

Series Vol. 67 , 05 January 2024


Open Access | Article

The Impact of ESG Disclosure on the Corporate Value of Automobile Industry: Evidence from China

Zichen Yuan * 1
1 University of Southampton

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 67, 71-79
Published 05 January 2024. © 05 January 2024 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Zichen Yuan. The Impact of ESG Disclosure on the Corporate Value of Automobile Industry: Evidence from China. AEMPS (2024) Vol. 67: 71-79. DOI: 10.54254/2754-1169/67/20241265.

Abstract

From the ESG ratings information on A-share listed automotive businesses published from 2018 to 2022, regression analyses using the Ordinary Least Squares (OLS) method were carried out for this company. The study explores how ESG disclosure affects business value in the car sector and experimentally examines the regression model. The study's conclusions show a strong positive influence between ESG disclosure and the worth of enterprises in the automotive sector. Therefore, the financial investment market supports companies with more ESG disclosure more strongly than those with lesser transparency. Through the correlation analysis, it is found that financial leverage and ESG are in negative influence, companies with more financial leverage will use their debt capital more frequently, and they can use lower costs to obtain funds for financial investment and ESG activities, which will increase the return on investment. However, businesses in poor financial condition do not have extra funds to care about ESG related operations. The body of information on ESG in the automobile industry is enriched by this study. It also discusses the effect of business profitability on ESG activities.

Keywords

ESG disclosure, Automobile industry, Company value

References

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Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 3rd International Conference on Business and Policy Studies
ISBN (Print)
978-1-83558-265-7
ISBN (Online)
978-1-83558-266-4
Published Date
05 January 2024
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/67/20241265
Copyright
05 January 2024
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

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