;This study primarily discusses the impact of ESG score of Taiwan′s electronics industry corporations on foreign investors′ shareholding. The ESG score used in the study is the index of TESG from Taiwan Economic Journal (TEJ). A total of 838 observations from electronics industry of Taiwan were used as samples for the study, spanning from 2016 to 2020, with 838 records, in carrying out an analysis of multiple regression models to explore whether foreign investors preferred the corporate with higher ESG score on the dimension of environment than social and governance.
The results of the study indicated that ESG score have a positive impact on foreign investors′ shareholding. For every one-point increase in the ESG score, foreign investors′ shareholding increases by 0.6675 percentage points. In the three major dimensions of ESG, the impact on foreign investors′ shareholding from corporate performance in social and governance are significantly higher than that of environment. This contradicts the original hypothesis that foreign investors prefer the corporations with higher ESG score in the environment dimension of ESG.
