Paper Title
The Effect of Carbon Peaking and Carbon Neutrality Goal on Stock Performance of Industry Company in China

Abstract
With the development of ESG, China proposed carbon peaking and carbon neutrality targets on September 22, 2020, clearly stating China's plans and requirements for carbon governance. This study used daily returns of A-shares from March 2, 2020, to October 8, 2020, and Daily Aggregated Market Returns with Cash Dividend Reinvested (Equal-Weighted) as the benchmark of the A-shares market. This study uses the ordinary least square model to calculate abnormal returns according to the Market Model. This study uses the T-test and the Patell-test to test the significance of the results. Inspired by the Legitimacy theory, this study finds that companies of carbon-intensive industries cannot obtain less negative abnormal returns under ESG policies by making environmental investments to improve their legitimacy in the Chinese A-share market. This study also examines robustness using the Fama-French Five-Factor model and subset data of companies from different industries and ownership. The main contribution of this paper is to fill in some of the gaps in the literature: this study explores whether the stock performance of industrial companies in the Chinese market is affected by ESG policies. Keywords - Event Studies; Stock Performance; Market Model; ESG Policy; China JEL Classification - G14; G18