ESG and stock market performances in the innovation management: evidence from Chinese wellness tourism industries
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With the aging population, rising middle-class health awareness, and improved wellness infrastructure, the wellness tourism sector in China has demonstrated significant potential. This study investigated the relationship between Environmental, Social, and Governance (ESG) scores and stock market performance among Chinese public companies in the wellness and tourism industries. Using panel regression and Granger causality analysis from 2015 to 2021, the results revealed that higher ESG, governance, and risk scores significantly improved stock returns, while better ESG, governance, and management scores reduced return volatility. Granger causality tests further confirmed a bidirectional influence between ESG performance and capital market outcomes. These findings suggest that improving ESG performance not only enhances stock returns but also mitigates investment risk. Practical recommendations include strengthening ESG disclosures, integrating ESG strategy into corporate governance, and developing dual-track policies to align financial and ESG goals. This research offers valuable insights for investors, policymakers, and industry practitioners seeking to align sustainable practices with financial performance.
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