The Dynamic Impact of Corporate Environmental Responsibility on Corporate Value
Research Article
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The Dynamic Impact of Corporate Environmental Responsibility on Corporate Value

Jiaxi Wang 1, Chunhui Yuan 2, Xiaolong Li 3*
1 Beijing University of Posts and Telecommunications
2 Beijing University of Posts and Telecommunications
3 Beijing University of Posts and Telecommunications
*Corresponding author: Xiaolongli@bupt.edu.cn
Published on 13 August 2025
Journal Cover
AEMPS Vol.209
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-80590-309-3
ISBN (Online): 978-1-80590-310-9
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Abstract

This paper investigates the effect of corporate environmental responsibility (CER) on firm value, employing data from Chinese A-share listed firms over the period from 2009 to 2022. The findings reveal a significant U-shaped nonlinear relationship between CER and firm value, with results robust across a series of robustness tests. Mediation analysis indicate that CER enhances firm value by alleviating financing constraints and reducing firm costs, while the mediation effect of human capital is not significant. Furthermore, the effect is more pronounced for firms in eastern and central China, non-state-owned enterprises, and those in non-high-pollution industries.

Keywords:

Corporate environmental responsibility, corporate value, dynamic impact

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Wang,J.;Yuan,C.;Li,X. (2025). The Dynamic Impact of Corporate Environmental Responsibility on Corporate Value. Advances in Economics, Management and Political Sciences,209,9-16.

References

[1]. Sarfraz, M., et al., Toward a new understanding of environmental and financial performance through corporate social responsibility, green innovation, and sustainable development. Humanities and Social Sciences Communications, 2023. 10(1).

[2]. Saygili, E., S. Arslan, and A.O. Birkan, ESG practices and corporate financial performance: Evidence from Borsa Istanbul. Borsa Istanbul Review, 2022. 22(3): p. 525-533.

[3]. Nguyen, H.T., H.V. Phan, and H. Vo, Agency problems and corporate social responsibility: Evidence from shareholder-creditor mergers. International Review of Financial Analysis, 2023. 90.

[4]. He F, Liu R, Chen LL. Does fulfilling environmental responsibility enhance corporate economic performance? A stakeholder perspective. Journal of Beijing Institute of Technology (Soc Sci Ed). 2020; 22(6): 11.

[5]. Liu, H., K. Wu, and Q. Zhou, Whether and How ESG Impacts on Corporate Financial Performance in the Yangtze River Delta of China. Sustainability, 2022. 14(24).

[6]. Su, K. and Y. Lu, The impact of corporate social responsibility on corporate financialization. European Journal of Finance, 2023. 29(17): p. 2047-2073.

[7]. Shan, X., Y. Song, and P. Song, How ESG performance impacts corporate financial performance: a DuPont analysis approach. International Journal of Climate Change Strategies and Management, 2024.

[8]. Wu, Z., et al., How does boardroom diversity influence the relationship between ESG and firm financial performance? International Review of Economics & Finance, 2024. 89: p. 713-730.

[9]. Lee, J. and K. Koh, ESG performance and firm risk in the U.S. financial firms. Review of Financial Economics, 2024. 42(3): p. 328-344.

[10]. Ren, S., et al., Can mandatory environmental information disclosure achieve a win-win for a firm’s environmental and economic performance? Journal of Cleaner Production, 2020. 250.

References

[1]. Sarfraz, M., et al., Toward a new understanding of environmental and financial performance through corporate social responsibility, green innovation, and sustainable development. Humanities and Social Sciences Communications, 2023. 10(1).

[2]. Saygili, E., S. Arslan, and A.O. Birkan, ESG practices and corporate financial performance: Evidence from Borsa Istanbul. Borsa Istanbul Review, 2022. 22(3): p. 525-533.

[3]. Nguyen, H.T., H.V. Phan, and H. Vo, Agency problems and corporate social responsibility: Evidence from shareholder-creditor mergers. International Review of Financial Analysis, 2023. 90.

[4]. He F, Liu R, Chen LL. Does fulfilling environmental responsibility enhance corporate economic performance? A stakeholder perspective. Journal of Beijing Institute of Technology (Soc Sci Ed). 2020; 22(6): 11.

[5]. Liu, H., K. Wu, and Q. Zhou, Whether and How ESG Impacts on Corporate Financial Performance in the Yangtze River Delta of China. Sustainability, 2022. 14(24).

[6]. Su, K. and Y. Lu, The impact of corporate social responsibility on corporate financialization. European Journal of Finance, 2023. 29(17): p. 2047-2073.

[7]. Shan, X., Y. Song, and P. Song, How ESG performance impacts corporate financial performance: a DuPont analysis approach. International Journal of Climate Change Strategies and Management, 2024.

[8]. Wu, Z., et al., How does boardroom diversity influence the relationship between ESG and firm financial performance? International Review of Economics & Finance, 2024. 89: p. 713-730.

[9]. Lee, J. and K. Koh, ESG performance and firm risk in the U.S. financial firms. Review of Financial Economics, 2024. 42(3): p. 328-344.

[10]. Ren, S., et al., Can mandatory environmental information disclosure achieve a win-win for a firm’s environmental and economic performance? Journal of Cleaner Production, 2020. 250.

Cite this article

Wang,J.;Yuan,C.;Li,X. (2025). The Dynamic Impact of Corporate Environmental Responsibility on Corporate Value. Advances in Economics, Management and Political Sciences,209,9-16.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

About volume

Volume title: Proceedings of ICEMGD 2025 Symposium: The 4th International Conference on Applied Economics and Policy Studies

ISBN: 978-1-80590-309-3(Print) / 978-1-80590-310-9(Online)
Editor: Florian Marcel Nuţă Nuţă, Xuezheng Qin
Conference website: https://2025.icemgd.org/
Conference date: 20 September 2025
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.209
ISSN: 2754-1169(Print) / 2754-1177(Online)

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