ESG in Promoting Sustainable Development of Manufacturing Companies in China’s Selected a-share Listed Companies: A Proposed Financial Mathematical Model

Abstract

In this study, the researcher proposes seven SOPs for the research objects, and establishes four basic assumptions on this basis, always focusing on the main line of how much ESG affects the sustainable development of manufacturing enterprises in China's A-share market. The four basic hypotheses correspond to the four dimensions of enterprise value, operation efficiency, business risk and investor reaction, and carry out empirical analysis, and draw their own research conclusions. It is verified that ESG promotes the construction of sustainable development ability of manufacturing enterprises in China's A-share market, and empirical evidence is also provided. In addition, these test results are through models’ regression demonstrated financial model, the basis of the four basic models provide the foundation data analysis of mathematical logic. The final conclusion supports the thesis that ESG promotes the sustainable development of manufacturing enterprises. The research conclusions of this paper are as follows: a. ESG performance has a significant positive relationship with the value of manufacturing enterprises; b. ESG performance has a significant positive relationship with the operational efficiency of manufacturing enterprises; c. There is a significant negative relationship between ESG performance and business risk of manufacturing enterprises; d. ESG performance has a significant positive relationship with investor reaction (investor preference) of manufacturing enterprises.