Analysis of the Influence of ESG on the Investment Efficiency of Enterprises

As the concept of ecological civilisation gradually permeates all aspects of life in China, the new driving force of China’s economic growth is becoming green and sustainable development. The concept of ESG has been gradually gaining awareness and attention in society. The Chinese government has also clearly pointed out that companies should pay more attention to responsible investment and continuously practice ESG management concepts to build a green China. This paper takes the impact of ESG on corporate investment efficiency as an entry point and explores the moderating role of the amount of news coverage in it. By extracting data from the CSMAR and the CNRDS and using Stata to extract and analyse the text of financial statements, this paper empirically analyses tens of thousands of corporate data from 6,464 listed companies in China during the period from 2013 to 2020, and finds that ESG positively affects corporate investment efficiency. Finally, the paper makes some suggestions, including that companies should strengthen ESG practice activities, the government should establish a sound system, and companies should emphasise the important role of external media in communicating corporate information.