Exploring the Impact of ESG Environmental Factors on Stock Valuation: The Case of NVIDIA
Zeqi Xia
Co-Presenters: Individual Presentation
College: College of Business and Public Management
Major: Finance
Faculty Research Mentor: Huaibing Yu
Abstract:
As sustainable investing continues to evolve, environmental, social and governance （ESG） ratings are increasingly having an impact on company valuations. This study takes NVIDIA as the research object to explore the relationship between ESG environmental rating and stock valuation. Using historical ESG scores and stock price data from 2015 to 2024, we used a univariate regression model to assess whether changes in environmental ratings affect market valuations. Our findings suggest a positive association between environmental performance and stock price trends, highlighting the potential for ESG considerations to shape investor expectations and company value. While financial and market factors also contribute to stock price movements, this research underscores the significance of environmental sustainability in investment decision-making. The study provides a simplified analytical framework that can be expanded to include broader ESG dimensions or applied to cross-industry comparisons. This study has reference value for studying the impact of environmental factors on the development of enterprises.Keywords: ESG ratings, stock valuation, environmental performance, sustainable investing, NVIDIA, market trends