Education, Science, Technology, Innovation and Life
Open Access
Sign In

Analysis of ESG Factors in Financial Environment Risk and Investment Decision

Download as PDF

DOI: 10.23977/ferm.2023.061124 | Downloads: 52 | Views: 431


Fangyuan Cai 1


1 China Galaxy Securities Co. Ltd., Beijing, China

Corresponding Author

Fangyuan Cai


The purpose of this paper is to deeply analyze the relationship between financial environment risk and ESG (Environment, Society and Governance) factors in investment decision-making, and to explore the role of ESG in reducing risks, improving long-term performance and promoting the sustainable development of financial markets. Through literature review and empirical analysis, we reveal the influence of ESG factor on enterprises and its importance in investment decision. This paper elaborates the essence of financial environmental risks, including market instability, political and economic changes and climate-related risks. Subsequently, we introduced three elements of ESG, namely environment, society and governance, and emphasized the comprehensive role of these factors in evaluating enterprise performance and risk. Furthermore, the influence of ESG factors on investment decision is studied. By integrating ESG factors, investors can understand the potential risks and long-term returns of enterprises more comprehensively. Empirical research shows that the investment strategy that pays attention to ESG factors can achieve better returns in the long run, which highlights the positive effects of ESG in building a sustainable investment portfolio. This paper provides an in-depth theoretical and empirical study on the relationship between ESG factors and investment decisions, and emphasizes the positive role of ESG factors in promoting the sustainable development of financial markets. This is of guiding significance for investors, enterprises and regulators to formulate more comprehensive and sustainable strategies in the face of changing financial environment.


ESG factors, environment risk, investment decision


Fangyuan Cai, Analysis of ESG Factors in Financial Environment Risk and Investment Decision. Financial Engineering and Risk Management (2023) Vol. 6: 162-167. DOI:


[1] Jin Man. (2021). Research on the high esg investment preference of insurance funds-based on the analysis of the company's long-term value investment path. Finance and Economy (11), 11.
[2] Li Xiaorong, &Xu Tengchong. (2022). Research Progress of Environment-Social Responsibility-Corporate Governance. Economics Trends (8), 14.
[3] Shen Lin. (2019). Analysis of the influencing factors of savings bonds residents' investment decision-an empirical study based on 3398 investor questionnaires in Shanghai. Shanghai Finance (12), 8.
[4] Tan Jinsong, Huang Renyu, & Zhang Jingxin. (2022). Esg performance and enterprise risk-an explanation from the perspective of resource acquisition. Management Science, 35(5), 16.
[5] Liu Songtao, Wang Yipeng, & Wang Linping. (2017). Analysis on the investment behavior of family venture financial assets and its influencing factors-based on the perspective of family endowment and cgss2013 data. Journal of Hunan Agricultural University, 18(6), 8.
[6] Luo Wenying, & Liang Jianying. (2020). Financial literacy and family venture capital investment decision-an empirical study based on the data of chfs 2017. Financial Theory and Practice (11), 12.
[7] Ma Lianfu, Qin He,&Du Shanzhong. (2021). Institutional Investor Network Embedding and Corporate Financial Decision-making—Based on the research perspective of entity enterprise financialization. Journal of Shanxi University of Finance and Economics (2), 14.
[8] Wen Bin, & Song Jiangli. (2022). Thinking about the practice of esg in banking industry. China Finance (8), 2.
[9] Guo Baiying, & Zhou Renyuan. (2019). Information Interaction, Investment Decision and Stock Price-Based on the Analysis of Institutional Investor Information Network. Financial Research (10), 19.
[10] Long Haiming, & Ouyang Jiajun. (2022). The influence of esg performance of domestic enterprises on the dynamic adjustment of capital structure. Southern Finance (12), 12.

Downloads: 18413
Visits: 353757

All published work is licensed under a Creative Commons Attribution 4.0 International License.

Copyright © 2016 - 2031 Clausius Scientific Press Inc. All Rights Reserved.