Research on the Relationship between Listed Companies' Carbon Footprint, Environmental Social and Governance Investment and Market Valuation Based on Experimental and Mathematical Statistics Analysis

Abstract

Environmental finance is an emerging and interdisciplinary field of research because issues surrounding the environment are a worldwide problem that affects the entire world including the economy. Academia in recent years has initiated to put a premium on this domain. This paper will mainly utilize statistical methods (specifically quantitative methods including regression models) to expound and analyze the correlation between corporations' valuation and ESG performance, and the purpose of this paper is to bring together finance (particularly the valuation of a corporation) and environmental indicators (intensity of CO2) to construe whether it is applicable to set ESG performance as a criterion to determine whether to invest or not for stakeholders. Corporations can also base on the results of this paper to adjust their annual reports to compensate for deficiencies. Results of this paper can be stretched out on other industries to improve and perfect their mechanisms.