Too Much of a Good Thing? Two-Sided Effect of ESG on Corporate Financial Performance

被引：0

作者：

Teng, Xiaodong ^{[1
]}

Wang, Shouhai ^{[1
]}

Liu, Huiping ^{[1
]}

Sun, Wengang ^{[2
]}

Zhu, Desheng ^{[3
]}

Wu, Kun-Shan ^{[4
]}

机构：

[1] Shandong Univ Finance & Econ, Sch Accountancy, 7366 East Rd 2nd Ring, Jinan 250014, Shandong, Peoples R China

[2] Shandong Univ Finance & Econ, MBA Coll, 7366 East Rd 2nd Ring, Jinan 250014, Shandong, Peoples R China

[3] Shandong Univ Finance & Econ, MPAcc Ctr, 7366 East Rd 2nd Ring, Jinan 250014, Shandong, Peoples R China

[4] Tamkang Univ, Dept Business Adm, 151 Yingzhuan Rd, New Taipei City 251301, Taiwan

来源：

INZINERINE EKONOMIKA-ENGINEERING ECONOMICS | 2024年 / 35卷 / 04期

关键词：

ESG; Corporate Financial Performance; Inverted-U Shaped; TMGT Effect; Sustainable Development; SOCIAL-RESPONSIBILITY; FIRM PERFORMANCE; SENSITIVE INDUSTRIES; DEBT MATURITY; GOVERNANCE; IMPACT;

D O I：

10.5755/j01.ee.35.4.33729

中图分类号：

F [经济];

学科分类号：

02 ;

摘要：

The purpose of this research is to clarify the curvilinear link between Environmental, Social and Governance (ESG) and corporate financial performance (CFP), and draws upon the "too much of a good thing" (TMGT) theory to verify whether the curvilinear relationship supports the conflicting results of previous studies. The sample comprises 69 listed companies in Taiwan with ESG disclosures over 2005 to 2020. The findings reveal that ESG impacts CFP in an inverted- U shaped, which is predominantly evident in the environmental and social pillars. This study validates the rising popularity of ESG investments. To enhance CFP, businesses must meticulously assess the allocation of capital to ESG to prevent under or over- investment. Managers should be aware of the TMGT effect and ensure the threshold of ESG is identified, as this is essential to balancing the cost/value trade-off, improving the CFP, and maintaining sustainable development.

引用

页码：487 / 503

页数：17

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