ESG Performance and Corporate Value: The Mediating Role of Green Innovation

ESG performance, or corporate environmental, social, and governance, has become a key indicator of a company's sustainability. This study employs a fixed-effect model to assess the nexus between ESG performance and corporate value using data from China's A-share listed companies between 2015 and 2022. The research results confirm that companies with superior ESG performance have better corporate value. Further mechanism test results show that green innovation partially mediates the relationship between company value and ESG performance. This conclusion still holds true in both robustness tests and Bootstrap tests. It shows that the execution of corporate ESG strategies is not only about improving green innovation capabilities but is also likely to directly promote the growth of corporate value by improving brand image, reducing capital costs, and enhancing market trust.