The relationship between environmental, social and governance (ESG) disclosures and firm performance
List of Authors
  • Ahmed Razman Abdul Latiff , Zhang Dawei

Keyword
  • ESG Disclosures, Firm Performance, China, Sustainability Reporting, Corporate Governance, Market Capitalization

Abstract
  • This study investigates the relationship between Environmental, Social, and Governance (ESG) disclosures and firm performance in China, focusing on the interconnectedness of ESG aspects and their collective impact on financial outcomes. Recognizing the increasing importance of ESG reporting in the global investment landscape, this research delves into how Chinese firms' ESG practices influence their market performance. Utilizing data from Chinese A-share listed companies from 2010 to 2021, the study employs a judgmental sampling of the top 258 stocks by market capitalization. The research methodology includes a comprehensive ESG scoring framework, linear regression models, and trend analysis using SPSS and advanced Excel tools. The findings aim to provide insights into the significance of ESG disclosures in China, a market where sustainability reporting is gaining momentum but still faces unique challenges and skepticism. The study contributes to the broader understanding of ESG's role in firm valuation and offers practical implications for corporate decision-makers in China, emphasizing the need for transparent and comprehensive ESG reporting to attract investment and enhance long-term firm value.

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