A Study on the Impact of ESG Investment on the Value of Chinese Listed CompaniesAn Empirical Analysis Based on the A-share Market

Against the backdrop of the global trend towards sustainable development, ESG (Environmental, Social, and Governance) investment has emerged as a crucial issue in the capital market. This paper delves into the relationship between ESG performance and corporate value, using panel data from Chinese A-share listed companies from 2018 to 2023. The findings are as follows: There is a significantly positive correlation between the comprehensive ESG score and corporate valuation (Tobin's Q). Moreover, ESG performance has a positive impact on reducing financing costs (Weighted Average Cost of Capital, WACC) and enhancing long-term profitability (Return on Equity, ROE).From an industry-specific perspective, there are differences in the ESG effects between the manufacturing and service sectors. In high-pollution industries, the marginal contribution of ESG improvement to corporate value is more pronounced. The research results indicate that ESG practices not only reflect a company's fulfillment of social responsibilities but also serve as an effective approach to enhancing its core competitiveness. This paper provides theoretical foundations and empirical evidence for investors to construct ESG portfolios and for enterprises to optimize their ESG management strategies.