SUSTAINABLE DEVELOPMENT PROJECT MANAGEMENT: HOW ESG PERFORMANCE AFFECTS CORPORATE VALUE THROUGH INVESTMENT EFFICIENCY

Abstract

The present research investigates how Environmental, Social and Governance (ESG) performance relates to the enhancement of corporate value within Chinese enterprises. The analysis concentrates on the intermediary functions played by investment efficiency and risk management efficiency, and also examines the influence of ESG maturity as a moderating factor. The central premise is to determine the extent to which strong ESG performance contributes to higher corporate value through more effective investment allocation and strengthened risk control, and how differing levels of ESG maturity shape these dynamics. A quantitative methodological approach was adopted, drawing on survey responses obtained from a sample of 300 companies operating in China. Structural Equation Modelling (SEM) served as the primary analytical technique, enabling evaluation of direct effects, mediating pathways, and moderating influences among the core constructs. The survey instrument incorporated previously validated measurement scales covering ESG performance, investment efficiency, risk management efficiency, corporate value, and ESG maturity. The empirical results demonstrate that ESG performance exerts a favourable impact on corporate value, both in a direct sense and indirectly through improvements in investment decision-making and risk management processes. In addition, the analysis indicates that ESG maturity strengthens the association between ESG performance and investment efficiency, thereby further contributing to enhanced corporate value. Overall, the study extends existing literature by clarifying how ESG performance affects corporate value through multiple organisational mechanisms, within the specific institutional and market setting of China. It provides new evidence regarding the dual mediating roles of investment efficiency and risk management efficiency, and underscores the significance of ESG maturity as a contextual factor.