The Relationship between ESG Performance and Firm Value, and The Moderating Role of Accounting Transparency

Abstract

This article takes Chinese A-share listed companies from 2009 to 2024 as a research sample to empirically test the relationship between ESG performance and corporate value, as well as the regulatory role of accounting transparency in this relationship. Research results show that ESG performance has a significant negative impact on firm value. However, accounting transparency can significantly alleviate this negative relationship and play a positive role. By highlighting the regulatory role of accounting transparency, this study provides new insights into the value and meaning of ESG activities in the Chinese market. It also provides practical inspiration for companies seeking to optimise ESG practices, regulators in improving information disclosure standards, and investors seeking to improve their decision-making processes.