The Impact of Corporate ESG Performance on Firm Value: The Mediating Effect of R&D Investment

Against the backdrop of the maturation of sustainable development concepts and ESG metrics, research on their impact on firm value has become increasingly significant. This not only helps enterprises enhance their value while balancing sustainable development but also amplifies their environmental externalities. This study employs a sample of A-share listed companies in China from 2017 to 2023, grounded in stakeholder theory, sustainable development theory, and resource management theory, to construct a time-fixed effects regression model. The aim is to explore the impact of ESG performance on firm value. The findings reveal a positive correlation between ESG performance and firm value. Further analysis indicates that R&D investment serves as a mediating factor in this relationship. Heterogeneity analysis demonstrates that the positive effect of ESG performance on firm value is more pronounced in enterprises located in western China. This research provides theoretical insights into corporate sustainable development and offers empirical guidance for enhancing firm value within a sustainable framework.