The Moderating Role of Country Governance in the Link between ESG and Financial Performance: A Study of Listed Companies in 58 Countries

Sustainability, Journal Year: 2024, Volume and Issue: 16(13), P. 5410 - 5410

Published: June 26, 2024

Corporate environmental, social, and governance (ESG) performance is expected to positively affect financial because it helps firms gain sociopolitical legitimacy from receiving positive stakeholder awareness gaining key resources. However, the research on relationship between corporate ESG has yielded mixed results. This paper explores impact of country environment ESG–financial link. We propose that stronger for in countries with better governance. Empirical analyses using a large panel dataset covering 11 years 58 support our arguments. found more effective political stability, regulatory quality, control corruption strengthen relationship. The implications findings are significant face different environments develop sustainable business strategies.

Language: Английский

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The role of renewable energy and carbon dioxide emissions on the ESG market in European Union

Managerial and Decision Economics, Journal Year: 2024, Volume and Issue: 45(7), P. 5146 - 5158

Published: July 15, 2024

Abstract In view of global climate problems, public interest in the environment has recently evolved over decision economics. Accordingly, this study assesses impact carbon emission allowances (CEA), information technology (IT), renewable energy generation (REG), and dioxide (CO 2 ) on environmental, social, governance (ESG) European Union (EU) by applying quantile‐based models from January 2, 2019 to February 29, 2024. The outcomes demonstrate that CEA IT have an increasing effect ESG with moderating economic policy uncertainty (EPU). REG a declining ESG, while EPU moderates makes across higher quantiles.

Language: Английский

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Governing the Responsible Investment of Slack Resources in Environmental, Social, and Governance (ESG) Performance: How Beneficial are CSR Committees?

Journal of Business Ethics, Journal Year: 2024, Volume and Issue: unknown

Published: Aug. 14, 2024

Abstract Possessing slack resources enables businesses to invest in innovative and stakeholder-focused initiatives. Therefore, we posit that higher encourage allocate these improve their environmental, social, governance (ESG) performance. Moreover, as a central sustainability mechanism, hypothesize the corporate social responsibility (CSR) committee supports investing ESG Using data from Nasdaq-100 firms, find initial support for positive effect of ESG. However, further analyses reveal become detrimental after an economically relevant threshold, indicating inverted U-shaped resources. Additionally, despite generally effect, uncover CSR committees cannot effectively enhance benefits low or moderate levels nor prevent detriments elevated our study significantly contributes ongoing discourse surrounding resources, ESG, usefulness committees. These findings hold significant implications ethical resource allocation, urging firms decision-makers reconsider dual-edged role unique context realizing its potential promoting practices within organization.

Language: Английский

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Impact of ESG performance on financial risk in energy firms: evidence from developing countries

International Journal of Energy Sector Management, Journal Year: 2024, Volume and Issue: unknown

Published: Nov. 25, 2024

Purpose This study aims to examine the impact of ESG performance on financial risk (FR) in energy firms from developing countries. It also explores moderating roles controversies and board gender diversity (BGD) this relationship. Design/methodology/approach The research uses a panel data set 218 20 countries 2019 2024, using two-stage least squares regression address potential endogeneity. Robustness checks are conducted fixed-effects estimation pooled ordinary squares. Findings results indicate that superior significantly reduces both total systemic risk. positively moderate relationship between FR, suggesting may weaken risk-reducing benefits strong practices. Additionally, BGD strengthens negative FR. confirm consistency these findings across different methods. Originality/value contributes growing body literature by examining role FR mitigation, specifically within sector To best authors’ knowledge, is first explore dynamics specific context. uniquely illustrates how ESG–risk relationship, offering fresh insights extend stakeholder, management legitimacy theories. highlight importance integrating factors into corporate governance management, particularly for operating high-risk, high-impact industries such as energy.

Language: Английский

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Do good and talk about it: The Impact of Investor Relations Quality on ESG Ratings

Finance research letters, Journal Year: 2025, Volume and Issue: unknown, P. 106839 - 106839

Published: Jan. 1, 2025

Language: Английский

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Multinational Corporations and Climate Change: Four Environmental Strategies and Their Impacts on Firm Performance

Business Strategy & Development, Journal Year: 2025, Volume and Issue: 8(1)

Published: March 1, 2025

ABSTRACT While existing research has examined various factors influencing the ESG–firm performance relationship, firm strategy‐related remain underexplored. To address this gap, study introduces two key strategic factors: (1) motivation and (2) relevance of ESG to core business operations. Additionally, we develop a conceptual framework that classifies four environmental response strategies examines their differential impacts on performance. Through case Walmart since early 2000s, find shift toward active was driven more by reputational financial challenges than ethical considerations. Furthermore, Walmart's enhanced integration initiatives in climate reflects dual objective: sustaining long‐term growth while mitigating rising costs regulatory compliance. This paper complements previous studies MNCs' engagement proposing opportunities for creating advantages, rather viewing it solely as additional costs.

Language: Английский

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Exploring the Impact of Environmental, Social, and Governance (ESG) Performance on Firm Efficiency: The Mediating Role of Environmental R&D Investment in BRICS Economies

Corporate Social Responsibility and Environmental Management, Journal Year: 2025, Volume and Issue: unknown

Published: March 3, 2025

ABSTRACT In emerging economies, businesses face mounting pressure to enhance their environmental, social, and governance (ESG) practices while boosting operational efficiency. This study investigates the mediating role of environmental R&D investment (END) in relationship between ESG performance firm Using fixed effects system GMM approaches, analysis covers data from BRICS firms 2010 2022. To ensure robustness, panel quantile regression (PQR) is employed validate results across various quantiles efficiency distribution. The findings indicate that positively influences efficiency, with END acting as a crucial mediator this relationship. Specifically, higher scores are more inclined invest END, which subsequently drives improvements through innovations sustainable technologies. suggests policymakers should implement financial mechanisms, incentives, regulations foster investments R&D, thereby supporting practices. research adds existing body literature by emphasizing unique function spending enterprise

Language: Английский

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The Double Signal of ESG Reports: Readability, Growth, and Institutional Influence on Firm Value

Sustainability, Journal Year: 2025, Volume and Issue: 17(6), P. 2514 - 2514

Published: March 13, 2025

The readability of a firm’s financial disclosure has long been used as variable to predict firm performance and explain investors’ decision-making in the market. We investigate whether is informative for non-financial disclosure. Based on signaling theory sample over 10,000 ESG reports released by Chinese public firms, this study explores how moderates relationship between ratings value. Empirical evidence highlights that have greater influence value firms releasing more readable reports. moderating effect weakened firms’ growth potential institutional ownership due extent information asymmetry These results are robust use alternative measures. This paper contributes literature emphasizing importance textual characteristics sustainability reporting providing actionable insights practitioners policymakers.

Language: Английский

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Influence of Proactive ESG Strategies, Slack Resources, and Collective Brain on ESG Disclosure and Firm Value in Japanese Companies

Corporate Social Responsibility and Environmental Management, Journal Year: 2025, Volume and Issue: unknown

Published: March 19, 2025

ABSTRACT This study examines the influence of firms' proactive ESG strategies (PESGS) and slack resources on disclosure quality firm value in Japanese companies, using a cross‐sectional sample 107 firms. The findings reveal that PESGS positively value, with mediating relationship between value. introduces concept collective brain, which moderates effect by fostering innovation through shared knowledge cultural diversity. Employing multi‐theory approach—the resource‐based view, dynamic capability theory, voluntary theory—this addresses gaps literature, offering insights into how practices create highlights importance strategic capabilities enhancing ESG, providing practical implications for managers, investors, academics aiming to align sustainability stakeholder expectations.

Language: Английский

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Giving Voice to Silence: The Role of Democracy in the Relationship Between Board Structure and ESG Performance in Africa

Strategic Change, Journal Year: 2025, Volume and Issue: unknown

Published: March 28, 2025

ABSTRACT The purpose of this paper is to examine the moderating role democracy in relationship between board structure and ESG performance African companies. To end, we investigated 208 companies based 10 countries for a period 5 years (2017–2021). Based on previous research that identified important characteristics East Africa, defined following structure: gender diversity, size, experience members. We analyzed data combining symmetric approach (panel regression) an asymmetric (fsQCA). found diversity smaller boards drive better performance. Our findings also indicate moderates Therefore, have more social participation, rights, inclusion, equity, tend higher ESG. In vein, by giving citizens voice, governments are indirectly promoting Results offer significant theoretical practical contributions emerging markets as whole.

Language: Английский

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