Advances in Economics, Management and Political Sciences
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Proceedings of the 3rd International Conference on Business and Policy Studies
Series Vol. 66 , 05 January 2024
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What Are the Key Influencing Factors of ESG? — Empirical Research Based on Chinese Listed Companies
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Abstract
This study explores the impact of company financial indicators on the environmental, social and governance (ESG) scores of listed companies in China using a fixed-effects panel regression model. I found that company’s total assets and number of employees are significantly and positively related to ESG scores, and that there may be a nonlinear relationship between the number of employees and ESG scores. In addition, current ratio has no significant effect in terms of ESG score. Debt-to-asset ratio was significantly negatively related to ESG score, while ROE and operating profit margin were significantly positively related to ESG score. The results suggest that different financial indicators may have different roles in predicting CSR fulfillment. Future research could delve into industry and regional differences, as well as other factors that influence the relationship between financial indicators and ESG scores.
Keywords
ESG, Chinese listed companies, financial performance
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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)
- 978-1-83558-263-3
- ISBN (Online)
- 978-1-83558-264-0
- Published Date
- 05 January 2024
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/66/20241205
- 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