Impact of ESG Performance on Corporate Growth Ability——Analysis of the Empirical Results on the Basis of the Panel Data of Chinese Listed Companies from 2010–2022

Abstract

With the increasing attention of society to sustainable development, ESG performance has increasingly become an important dimension in evaluating corporate performance. The importance has shifted from the display of corporate image to the measurement of business growth and long-term value. The existing research investigates the relationship between ESG performance and enterprise growth. The empirical analysis of capability is still insufficient. On the basis of a systematic review of the relevant theories and literature, this study uses a two-way fixed effects model to analyze Chinese listed companies from 2010–2022 to investigate in depth the relationship between ESG performance and corporate growth ability. The study revealed that ESG implementation inhibits enterprise growth in the short term because of increased costs, and the extent of this impact is influenced by ownership methods and regional factors. This study provides corresponding insights for relevant entities, such as enterprises and the government. It is suggested that relevant entities such as enterprises and the government should comprehensively consider long-term and short-term cost-effectiveness and adopt differentiated strategies when implementing ESG.