This paper explores the link between Environmental, Social as well as Governance (ESG) disclosures and financial performance of unique firms operating in China. The research covers A-share listed companies of the Shanghai Stock Exchange and is for 2014-2023. The research investigates the impact of ESG on important financial indices such as Tobin's Q ratio, Return on Assets (ROA), and Return on Equity (ROE). Based on Stakeholder, Resource-Based (RBV), and Institutional Theory perspectives; this paper aims to better understand the mechanisms through which ESG practices can create value for firms. Results: The findings show a direct positive relationship between environmental criterion and finance related performance, mixed results for social indicators and clear governance contribution when combined with ownership structures that allow effective monitoring as principal-agent theory would predict. The research ends with a message for corporate managers and policy-makers, highlighting the significance of ESG in enabling sustained financial performance.
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