Journal of Accounting, Finance & Management Strategy





Volume 16, Number 2, December 2021

Do R&D and ESG affect the corporate value? Evidence from China Fin-Tech Industry


In recent years, the application scenarios of digital technology have become more extensive, and the new business formats derived from Fin-Tech will also become a new driving force for the high-quality development of China's economy. Therefore, China has begun to attach importance to the development of environmental, social and governance (ESG). As Fin-Tech is a high-tech industry, product research and development will have a dual effect on enterprises. This article uses the stepwise regression methods to analyze the Fin-Tech companies from 2017 to 2019, and respectively explore the simultaneity effect of ESG and R&D investment on corporate value. The empirical results show that R&D investment is positively related to the corporate value. Beside, ESG is positively correlated with the corporate value in China Fin-Tech industry. However, both ESG and R&D investment does not have a significant impact on corporate value. Therefore, if Chinese Fin-Tech corporations can fulfill their ESG, they will become an intangible asset of the corporation, enabling the corporation to establish a new differentiated competitive advantage, thereby enhancing the corporate value.

Keywords: Fin-Tech, Environmental, Social Responsibility and Corporate Governance (ESG), Corporate Value, R&D Investment.

JEL Classification: C87, M10, M14