Risk Perception and Enterprise ESG Investment

Abstract

Risk is inevitable in enterprise operation. This paper attempts to extract indicators from the annual reports published by listed companies through text mining method, measure the risk perceived by enterprises, and study the impact of enterprise risk perception indicators on their own ESG investment behavior, in order to enrich the theoretical results of risk and enterprise behavior, and provide decision-making reference for the government and relevant departments of enterprises. Using the data of 1964 listed companies from 2016 to 2020, this paper empirically tests the impact of managers' risk perception on the ESG investment behavior of listed companies, and draws the following conclusions: there is a significant reverse U-shape correlation between risk perception and enterprise ESG investment. Higher financing constraints and female proportion of the board will both stimulate the reverse U-shape correlation between risk perception and enterprise ESG investment.