SUSTAINABLE DEVELOPMENT PROJECT MANAGEMENT: HOW ESG PERFORMANCE AFFECTS CORPORATE VALUE THROUGH INVESTMENT EFFICIENCY

Abstract

This study aims to explore the impact of Environmental, Social, and Governance (ESG) performance on corporate value in Chinese firms. It focuses on the mediating roles of investment efficiency and risk management efficiency, as well as the moderating role of ESG maturity. The research seeks to understand how ESG performance enhances corporate value through efficient investment and risk management practices and how ESG maturity influences these relationships. The study employs a quantitative research design using survey data collected from 300 firms in China. Structural Equation Modeling (SEM) was used for data analysis to assess the direct, indirect, and moderating relationships among the variables. The survey measured key constructs, including ESG performance, investment efficiency, risk management efficiency, corporate value, and ESG maturity using validated scales. The study found that ESG performance positively influences corporate value both directly and indirectly through the mediating roles of investment efficiency and risk management efficiency. Furthermore, ESG maturity was found to moderate the relationship between ESG performance and investment efficiency, enhancing its effect on corporate value. The findings highlight the importance of ESG maturity in maximizing the financial benefits of ESG practices. This research contributes to the literature by exploring the complex mechanisms through which ESG performance impacts corporate value, particularly in the Chinese context. It offers novel insights into the mediating roles of investment and risk management efficiency and the moderating effect of ESG maturity, providing valuable implications for business leaders and policymakers.