Research on the Correlation between ESG Performance and Economic Value Added

Abstract

With the ESG investment theory gradually gaining public attention and recognition, the relationship between ESG performance and enterprise profitability deserves further exploration. This paper empirically analyses the impact effect between ESG performance and Economic Value Added(EVA), by using A-share listed companies from 2012 to 2019 as the research object. The research results show that ESG performance can significantly improve Economic Value Added. Through further analysis, it was found that: (i) all three dimensions of ESG can significantly increase Economic Value Added. (ii) ESG performance remains highly significant in increasing Economic Value Added for firms in high-carbon emission industries.