Research on the impact of ESG performance on brand value : an analysis of the mediating role of corporate reputation

Abstract

The growing importance of a company's ESG (Environmental, Social, and Governance) performance not only affects its societal image but also has a profound impact on market competitiveness and brand value. This study examines the influence of corporate ESG performance on brand value, with a focus on the mediating role of corporate reputation. Using empirical data from A-share listed companies in the "Top 500 Most Valuable Chinese Brands" from 2015 to 2022, the analysis reveals that strong ESG performance significantly enhances brand value and bolsters the company’s reputation among the public and stakeholders. Further analysis shows that corporate reputation has a significantly positive effect on brand value and serves as a partial mediator between ESG performance and brand value, meaning that good ESG practices can enhance brand value indirectly by improving corporate reputation. Heterogeneity analysis demonstrates that state-owned, private, high-tech, non-high-tech companies, and firms in different stages of their life cycles all benefit from increased ESG performance, resulting in higher brand value. The study recommends that companies tailor their ESG strategies according to their unique characteristics and industry features to maximize brand value