TITLE:
Comprehensive ESG Score and Financial Performance of Carbon-Neutral Concept Enterprises —Based on Entropy Weight-TOPSIS and Grey Relational Analysis
AUTHORS:
Zedong Cai, Mengyue Qian, Linjie Wang
KEYWORDS:
Entropy Weight-TOPSIS, Grey Correlation Analysis, Carbon Neutralization, Comprehensive ESG Score, Financial Performance
JOURNAL NAME:
Open Journal of Business and Management,
Vol.11 No.1,
January
16,
2023
ABSTRACT: Based on entropy
weight-TOPSIS and Grey Relational Analysis, the Bloomberg ESG indicator system
is reconstructed, and the impact of the optimized ESG score on the financial
performance of the carbon-neutral concept enterprise is studied. The results
show as follows. 1) The relative importance of environment (E), society (S) and governance (G) will change with time and the objects being evaluated. Generally,
society (S) has the highest importance. 2) There is a time-lag effect on the impact of ESG scores on financial
performance. The latter worsens in the short term due to the high investment
cost of ESG and improves in the long term due to the improvement of corporate
image and reputation. 3) The results of heterogeneity analysis show that the impact of ESG score
on the financial performance of an enterprise is related to the regional
economic development level and the relative carbon emission intensity.