Proceedings of the 5th International Conference on Economic Management and Big Data Application (ICEMBDA 2024)

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Impact of ESG Controversies on Corporate Valuation

Authors
Tianyu Li1, *
1School of Finance, Nankai University, Tianjin, China
*Corresponding author. Email: tianyuli2003@163.com
Corresponding Author
Tianyu Li
Available Online 30 December 2024.
DOI
10.2991/978-94-6463-638-3_38How to use a DOI?
Keywords
ESG Controversy Scores; Price-to-Book Ratio; Random Forest
Abstract

The purpose of this study is to investigate the impact of ESG controversies on corporate valuation, with a focus on providing insights for effective ESG management to optimize financial performance and fulfill social responsibility. Empirical data from the CSI 300 Index was utilized, and both fixed effects and Random Forest models were employed to analyze the influence of ESG controversy scores on the price-to-book ratio and explore the underlying mechanisms. The results of the study indicate a significant and nonlinear impact of ESG controversies on PB, with social controversies exhibiting a U-shaped relationship, environmental controversies showing significant effects at high scores, and governance controversies demonstrating a consistently positive impact. These findings underscore the importance of strategic ESG management in enhancing firm value by prioritizing high environmental scores, effectively addressing social controversies to achieve optimal performance, and consistently improving governance practices to build investor confidence.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 5th International Conference on Economic Management and Big Data Application (ICEMBDA 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
30 December 2024
ISBN
978-94-6463-638-3
ISSN
2352-5428
DOI
10.2991/978-94-6463-638-3_38How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Tianyu Li
PY  - 2024
DA  - 2024/12/30
TI  - Impact of ESG Controversies on Corporate Valuation
BT  - Proceedings of the 5th International Conference on Economic Management and Big Data Application (ICEMBDA 2024)
PB  - Atlantis Press
SP  - 368
EP  - 374
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-638-3_38
DO  - 10.2991/978-94-6463-638-3_38
ID  - Li2024
ER  -