A Study of ESG Performance and Financial Performance of Manufacturing Companies

DOI

10.2991/978-2-38476-462-4_55How to use a DOI?

Keywords

ESG; manufacturing companies; corporate performance; social responsibility

Abstract

Manufacturing enterprises play a significant role in China's economic and social development, serving as a crucial force in promoting high-quality development and achieving national modernization. This paper empirically examines the relationship between ESG performance and corporate financial performance using a sample of Chinese A-share manufacturing companies from 2014 to 2024. The fixed effects model reveals that ESG performance is significantly and positively related to financial performance, and this conclusion remains valid after a robustness test is conducted by replacing the EVA indicator with an alternative measure. The regression analysis of ownership heterogeneity subgroups reveals that the ESG performance of state-owned enterprises significantly contributes to their financial performance, whereas non-state-owned enterprises fail to pass the significance test, suggesting that differences in government support may be a key moderator. In addition, good ESG practices enhance long-term competitiveness through technological innovation and risk aversion but need to be balanced with upfront investment costs such as environmental governance expenditures. In this regard, enterprises need to incorporate ESG into the core of their strategies and establish a systematic management mechanism. The government should incentivize various types of enterprises to deepen their ESG practices through tax incentives and mandatory disclosure policies, promoting the green transformation of manufacturing industries.

Copyright

© 2025 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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TY  - CONF
AU  - Xuechun Wang
PY  - 2025
DA  - 2025/09/12
TI  - A Study of ESG Performance and Financial Performance of Manufacturing Companies
BT  - Proceedings of the 2025 9th International Seminar on Education, Management and Social Sciences (ISEMSS 2025)
PB  - Atlantis Press
SP  - 503
EP  - 510
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-462-4_55
DO  - 10.2991/978-2-38476-462-4_55
ID  - Wang2025
ER  -