Research on the Impact of ESG Performance on Corporate Investment Efficiency

Under the background of "dual carbon", achieving sustainable development is a long-term goal for enterprises. At the same time, ESG is based on the development concepts of green environment, social, and corporate governance, and its disclosure information is crucial for the long-term operation of enterprises as a focus of stakeholders' attention. Investment efficiency plays a key role in the stable development of enterprises, so this paper takes the data of Chinese A-share listed companies from 2011-2021 as the research sample, adopts two-way fixed effects through panel data, and conducts regression analysis on ESG performance and enterprise investment efficiency. The results show that good ESG performance can effectively alleviate enterprises' over investment and under investment, and effectively improve enterprise investment efficiency. Further analysis reveals that for enterprises with different lifecycles and industries, mature and heavily polluting industries have a greater investment efficiency improvement effect on ESG performance. This study has enlightening significance for enterprises to systematically manage ESG, improve the quality of ESG information data, and promote sustainable development of enterprises.