An Empirical Analysis of the Relationship between e-Business Corporate Valuation and ESG Performance in China

Abstract

Research Purpose: The purpose of this study is to investigate the relationship between ESG (Environmental, Social and Governance) performance and e-business corporate valuation in China. Research Methods: A multiple linear regression model was used for the analysis,. e-business corporate valuation set as the dependent variable was represented by Tobin's Q. The ESG performance was measured by ESG ratings, which served as the independent variable in the analysis. Furthermore, 4 control variables were integrated into the study. Results in Research: The results indicated that ESG ratings and company growth rate (Growth) were positively (+) correlated with Tobin's Q, while the company's asset size (Size) and leverage (Lv) were negatively (-) correlated with Tobin's Q. Research Conclusion: A correlation exists between e-business corporate valuation and ESG performance in China. Additionally, the control variables of company asset size (Size), leverage (Lv), and company growth rate (Growth) have also exhibited correlations with China’ s e-business corporate valuation. Suggestions in Research: This study offers insights for investors interested in e-business corporate underscoring ESG performance as an essential consideration in their assessment process. It also encourages businesses to prioritize green ESG practices, environmental protection, and sustainable development.