Predicting stock performance based on ESG practices
zhenyuan weng
Co-Presenters: Individual Presentation
College: College of Business and Public Management
Major: Finance
Faculty Research Mentor: Huaibing Yu
Abstract:
This study examines the relationship between ESG practices and the stock performance of companies listed in the Internet industry from 2023 to 2024. The results show that firms' ESG efforts have a short-term growth impact on their stock performance. Issues related to ESG have gained more and more attention from policymakers and researchers and generated continued debate on the effects of ESG on the financial performance of a corporation. The mainstream finance dogma is that ESG practices are an infringement on investment, and therefore, may limit profitability. This positive relationship is nonlinearly convex and is concentrated in the three months of ESG policy implementation, after which it fades away. This study fills a gap in the literature on the relationship between ESG and stock performance in the Internet industry. It provides some suggestions for the sustainable development of the Internet industry.