The impact of ESG on return -Based on the information technology industry

Abstract

This study aims to explore the correlation between ESG ratings and returns in the electronic communication industry, and analyze the factors that affect this relationship. Firstly, there is a significant positive correlation between ESG ratings and returns, indicating the correlation between environmental, social, and governance factors and the profitability of enterprises in the electronic communication industry. Secondly, the study identified institutional investors as intermediaries who can actively adjust the relationship between ESG ratings and returns, thereby strengthening this correlation. However, there is a significant difference between state-owned enterprises (SOEs) and private enterprises, and ESG ratings are significantly correlated with the returns of state-owned enterprises, while they are not significant in private enterprises. In addition, the study also showed a negative moderating effect of company size on the relationship between ESG ratings and returns, indicating that company size may affect the impact of ESG factors on profitability, especially within larger companies.