Impact of ESG Performance on Corporate Value in Low-Altitude Economy Enterprises

Low-altitude economy has already become an important strategic engine for high-quality development as a symbol of new productive forces. The impact of ESG performance on corporate value within the low-altitude economy (a strategic emerging industry), as well as its dual effects and situational specificities, is systematically and empirically examined in this paper using panel data from Chinese A-share listed companies from 2018 to 2023. The results show that the ESG performance of “low-altitude economy” enterprises has a significant impact on company value through two channels: investment in R&D and obtaining more government subsidies. Analyst coverage might be contradictory; too much analyst coverage may even counteract the advantage of ESG performance. Our results also reveal significant heterogeneity patterns. Value-enhancing effects of ESG are greater in low-pollution sectors, technology-based enterprises, non-State-owned companies, and companies located in central and western China. To foster sustainable, high-quality company business, this paper provides suggestions for implementing ESG and conceptually elaborates on how the low-altitude economy influences company ESG performance.