Discussion on the Correlation between ESG Performance and Corporate Value

This study integrates existing research on ESG (Environmental, Social, and Governance) to explore its impact on corporate value. By analyzing drivers of ESG performance (e.g., policy, governance) and economic consequences (e.g., financing costs, market trust), we demonstrate that strong ESG practices enhance corporate value through risk mitigation and stakeholder confidence. However, overinvestment in ESG may harm profitability, highlighting the need for balanced strategies.