Does CEP Influence Corporate Value? Evidence from Chinese Manufacturing Enterprise.

This study explores the relationship between the performance of corporate environmental protection responsibility (CEP) and corporate value. Because CEP is part of corporate social responsibility (CSR), we also investigated the impacts of other parts of CSR on corporate value. From a stakeholder perspective and with considering the unique aspects of Chinese corporations, we establish a CSR index evaluation system based on the framework of ISO26000. We subdivided the CSR index into four types: NCEPX (qualitative indices of non-CEP performance), NCEPL (quantitative indices of non-CEP performance), CEPX (qualitative indices of CEP performance), and CEPL (quantitative indices of CEP performance). We selected 122 listed manufacturing companies in mainland China to conduct CSR performance evaluations and run multiple linear fixed effect panel models. The results show that enterprises can increase corporate value by fulfilling the non-CEP, and NCEPL is more significant than NCEPX; Conversely, fulfilling CEP decreases corporate value. We also find that the coefficient of integrated CSR index is not significant.