The Impact of Market-Based Environmental Regulation on Corporate Stock Price Fluctuations—Moderating Effects Based on ESG Performance

Taking listed enterprises in China’s heavily polluting industries from 2010 to 2021 as the research object, this paper not only explores the impact of market-based environmental regulations on corporate stock price fluctuations and the moderating effect of ESG performance, but also analyzes the heterogeneous impact of property rights nature and regional differences. Research shows that the increased intensity of market-based environmental regulations significantly increases corporate stock price fluctuations, and good ESG performance can effectively mitigate such a negative impact and enhance investor confidence by strengthening information disclosure and fulfilling social responsibilities. In addition, private enterprises are more affected than state-owned enterprises, and enterprises in the eastern region are more sensitive to environmental regulations.