Study on the impact of ESG performance on corporate value: Based on a media attention perspective

Abstract

The paper investigates the impact of ESG performance on corporate value from a media attention perspective. The Chinese government attaches importance to green development, and society is increasingly concerned about enterprises' ESG performance. However, the overall ESG performance of Chinese companies from 2011 to 2021 is poor. Media attention scrutinizes corporate behavior, prompting companies to improve. Limited research exists on corporate ESG performance and corporate value, particularly regarding the mediating role of media attention. On a theoretical basis, this study empirically examines corporate ESG, media attention, and firm value. The study reveals: i) strong ESG positively impacts corporate value; ii) strong ESG attracts media attention; and iii) good corporate ESG boosts corporate value according to gaining more media attention. The paper proposes actionable recommendations to enhance China's corporate ESG performance at the corporate, government, and societal levels. This conclusion of this paper can prompt enterprises to enhance their awareness of social responsibility and provide support for enhancing ESG. This is in line with the country's green finance strategy and will help corporations increase value, achieving a win-win situation.