The Intrinsic Association between Corporate Financial Characteristics and Corporate ESG Scores:An Exploration of Identification Prediction Based on Random Forest Approach
ESG has become an important concept for evaluating corporate value.Compared with the information disclosed by enterprises themselves,ESG scores of external organizations are formed after information screening to form key issues and professional analysis,aiming to make more informed de-cisions for investors.This paper empirically analyzes the intrinsic correlation between corporate financial characteristics and institutional ESG scores,and finds that:financial indicators of listed companies in China,especially abnormal indicators,can predict ESG scores to a greater extent,i.e.,the current corporate ESG judgment is still dominated by financial information,but the predictive ability has been weakening year by year,i.e.,the ESG scores are tending to be independent.Under the environmental and social dimensions,the predictive ability of financial characteristics on the score is significantly lower than the composite score,and the fulfillment of environmental protection and product responsibility by enterprises is more for complying with the mandatory provisions of laws and regulations and maintaining the necessary reputational considerations.The conclusions of this paper provide a reference for improving the ESG scoring mechanism with Chinese characteristics and promoting its functional synergy with financial information.
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