ESG and stock market performances in the innovation management: evidence from Chinese wellness tourism industries
Article Sidebar
Main Article Content
บทคัดย่อ
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.
Article Details
อนุญาตภายใต้เงื่อนไข Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
เอกสารอ้างอิง
Avramov, D., Cheng, S., Lioui, A., & Tarelli, A. (2022). Sustainable investing with ESG rating uncertainty. Journal of Financial Economics, 145(2B), 642–664. https://doi.org/10.1016/j.jfineco.2021.10.011
Broadstock, D., Chan, K., Cheng, L., & Wang, X. (2020). The role of ESG performance during times of financial crisis: Evidence from COVID-19 in China. Finance Research Letters, 38, 101716. https://doi.org/10.1016/j.frl.2020.101716
Chen, L., Khurram, M. U., Gao, Y., Abedin, M. Z., & Lucey, B. (2023). ESG disclosure and technological innovation capabilities of the Chinese listed companies. Research in International Business and Finance, 65, 101974. https://doi.org/10.1016/j.ribaf.2023.101974
Chen, S., Han, X., Zhang, Z., & Zhao, X. (2023). ESG investment in China: Doing well by doing good. Pacific-Basin Finance Journal, 77, 101907. https://doi.org/10.1016/j.pacfin.2022.101907
Cheng, Q., & Warfield, T. D. (2005). Equity incentives and earnings management. The Accounting Review, 80(2), 441–476. https://doi.org/10.2308/accr.2005.80.2.441
Fallatah, Y., & Dickins, D. (2012). Corporate governance and firm performance and value in Saudi Arabia. African Journal of Business Management, 6, 10025–10034. https://doi.org/10.5897/AJBM11.2954
Geng, S., Liu, S., & Liao, X. (2021). Operating performance of tourism listed companies in China: The perspective of economic value added. Sage Open, 11(1). https://doi.org/10.1177/2158244021996700
Gonçalves, B., Coelho, L. S., & Pinto, P. (2024). Earnings management in the hospitality industry: A systematic literature review. Tourism & Management Studies, 20(1), 65–77. https://doi.org/ 10.18089/tms.20240105
Guo, Z., & Kga, U. K. (2012). Corporate governance and firm performance of listed firms in Sri Lanka. Procedia – Social and Behavioral Sciences, 40, 664–667.
He, F., Qin, S., Liu, Y., & Wu, J. (2022). CSR and idiosyncratic risk: Evidence from ESG information disclosure. Finance Research Letters, 49, 102936. https://doi.org/10.1016/j.frl.2022.102936
Irani, F., Katircioglu, S., & Gokmenoglu, K. K. (2021). Effects of business and finance conditions on tourism firms’ financial performances: Evidence from major tourist destinations. Sage Open, 11(3). https://doi.org/10.1177/21582440211040120
Jin, S., Gao, Y., & Xiao, S. (2021). Corporate governance structure and performance in the tourism industry in the COVID 19 pandemic: An empirical study of Chinese listed companies. Sustainability, 12(21), 11722.
Kalia, D., & Aggarwal, D. (2023). Examining impact of ESG score on financial performance of healthcare companies. Journal of Global Responsibility, 14(1), 155–176.
Li, H., Zhang, X., & Zhao, Y. (2022a). ESG and firm’s default risk. Finance Research Letters, 47, 102713.
Li, X., Xu, F., & Jing, K. (2022b). Robust enhanced indexation with ESG: An empirical study in the Chinese stock market. Economic Modelling, 107, 105711.
Li, Z., Feng, L., Pan, Z., & Sohail, H. M. (2022c). ESG performance and stock prices: Evidence from the COVID 19 outbreak in China. Humanities and Social Sciences Communications, 9, 242.
Lin, Y., Fu, X., & Fu, X. (2021). Varieties in state capitalism and corporate innovation: Evidence from an emerging economy. Journal of Corporate Finance, 67, 101919.
Liu, D., Gu, K., & Hu, W. (2023). ESG performance and stock idiosyncratic volatility. Finance Research Letters, 58(B), 104393.
Lööf, H., Sahamkhadam, M., & Stephan, A. (2022). Is corporate social responsibility investing a free lunch? The relationship between ESG, tail risk, and upside potential of stocks before and during the COVID 19 crisis. Finance Research Letters, 46, 102499.
Pedersen, L. H., Fitzgibbons, S., & Pomorski, L. (2021). Responsible investing: The ESG efficient frontier. Journal of Financial Economics, 142(2), 572–597. https://doi.org/10.1016/j.jfineco.2020.11.001
Qiu, M., & Yin, H. (2019). An analysis of enterprises’ financing cost with ESG performance under the background of ecological civilization construction. Journal of Quantitative & Technological Economics, (3), 108–123. https://doi.org/10.13653/j.cnki.jqte.2019.03.007
Tisdell, C. A., & Wen, J. (1991). Investment in China’s tourism industry: Its scale, nature, and policy issues. China Economic Review, 2(2), 175–193.
Velnampy, T., & Niresh, J. A. (2012). The relationship between capital structure and profitability. Global Journal of Management and Business Research, 12, 66. http://journalofbusiness.org/ index.php/GJMBR/article/view/766
Wu, C., Xiong, X., & Gao, Y. (2022). Does ESG certification improve price efficiency in the Chinese stock market? Asia Pacific Financial Markets, 29, 97–122. https://doi.org/10.1007/s10690-022-09393-5
Yang, Y., Orzes, G., Jia, F., & Chen, L. (2021). Does GRI sustainability reporting pay off? An empirical investigation of publicly listed firms in China. Business & Society, 60(7), 1738–1772. https://doi.org/10.1177/0007650319831632
Yin, J. (2024). An empirical research on the impact of ESG performance on Chinese stock market. In X. Li, C. Yuan, & J. Kent (Eds.), Proceedings of the 7th International Conference on Economic Management and Green Development. ICEMGD 2023. Springer. https://doi.org/10.1007/978-981-97-0523-8_144
Yin, X.-N., Li, J.-P., & Su, C.-W. (2023). How does ESG performance affect stock returns? Empirical evidence from listed companies in China. Heliyon, 9(5), e16320. https://doi.org/10.1016/j.heliyon. 2023.e16320
Zhang, X., Zhao, X., & Qu, L. (2021). Do green policies catalyze green investment? Evidence from ESG investing developments in China. Economics Letters, 207, 110028. https://doi.org/ 10.1016/j.econlet.2021.110028
