Publication Type

Journal Article

Version

publishedVersion

Publication Date

8-2018

Abstract

Nowadays, listed companies around the world are shifting from short-term goals of maximizing profits to long-term sustainable environmental, social, and governance (ESG) goals. People have come to realize that ESG has become an important source of the corporate risk and may affect the company's financial performance and profitability. Recent research shows that good ESG performance could improve the financial performance in some countries. Yet, the question of how does ESG affect financial performance has not been thoroughly discussed and studied in China. In this article, we study China's listed power generation groups to explore the relationship between ESG performance and financial indicators in the energy power market based on the panel regression model. The results show that good ESG performance can indeed improve financial performance, which has significant meanings for investors, company management, decisionmakers, and industry regulators.

Keywords

ESG, financial indicators, panel regression model, power generation, China

Discipline

Asian Studies | Databases and Information Systems | Environmental Sciences | Finance and Financial Management

Publication

Sustainability

Volume

10

Issue

8

First Page

1

Last Page

18

ISSN

2071-1050

Identifier

10.3390/su10082607

Publisher

MDPI

Copyright Owner and License

Authors

Creative Commons License

Creative Commons Attribution 4.0 International License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Additional URL

https://doi.org/10.3390/su10082607

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