The Impact of Environmental Performance on Firm Value: Evidence from Listed Companies in China

Environmental performance has become increasingly significant in the context of global sustainability and corporate governance. Considering the increasing severity of global environmental issues, the impact of environmental performance on firm value has attracted widespread attention. This study aims to explore the impact of environmental performance on firm value, using a sample of Chinese listed companies from 2013 to 2022. The study employs various empirical analysis methods, including ordinary least squares and fixed effects models, to rigorously examine this relationship. The findings reveal that environmental performance has a significant negative impact on firm value. The results provide valuable references for companies in formulating balanced environmental management strategies that address both economic and environmental objectives. Furthermore, the study proposes that future research should delve into industry-specific impacts and the long-term effects of environmental performance on firm value and conduct comparative analyses with data from other countries to enhance the generalizability and applicability of the findings.