A non-linear assessment of ESG and firm performance relationship: evidence from China

Pu, Ganlin

doi:10.1080/1331677x.2022.2113336

Cited by 11 publications

(7 citation statements)

References 62 publications

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“…The findings revealed a negative and statistically insignificant association between the two. This finding corroborates previous studies, such as Pu (2023), who found a negative relationship between leverage and profitability in the Chinese Food and Beverage industry. This implies that an increase in leverage does not necessarily lead to higher profitability in the food and beverage sector.…”

Section: Discussionsupporting

confidence: 92%

Impact of profitability elements on the food and beverage industry in Malaysia

2023

SMRJ

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This study investigates the impact of profitability on Malaysia's food and beverage industry, analysing four independent variables: leverage, liquidity, growth, and productivity. The sample comprised 35 listed companies in the sector, and ordinary least square (OLS) regression was used for data analysis. The results indicate a significant negative correlation between liquidity and profitability, while growth and productivity have a positive influence on profitability. These findings diverge from prior research, which suggested a negative effect of liquidity on profitability and a positive impact from growth, leverage, and productivity. However, certain limitations exist, such as the small sample size and exclusion of sub-sectors. Future research should consider a more diverse and extensive sample, including private firms, to yield comprehensive results. Additionally, adopting novel data gathering methods could enhance the study's quality and scope. Policymakers and investors can benefit from this study's insights to foster growth and informed decision-making within the food and beverage industry.

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Section: Discussionsupporting

confidence: 92%

Impact of profitability elements on the food and beverage industry in Malaysia

2023

SMRJ

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“…Not surprisingly, therefore, over the last few decades, the vast majority of empirical evidence documents a positive relationship between corporate ESG and financial performance [59]. Interestingly, recent evidence from the Chinese market provided by Pu [60] reveals a positive, yet curvilinear association between firm financial performance and ESG activities. The findings indicate that the relationship takes a form of an inverted U-shaped curve, suggesting that an excessive allocation of companies' resources and organizational efforts to ESG activities might be detrimental to their financial performance.…”

Section: Literature Reviewmentioning

confidence: 99%

Does Firm Size Matter for ESG Risk? Cross-Sectional Evidence from the Banking Industry

Bolibok

2024

Sustainability

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The ambiguous evidence regarding the linkages between firm size and ESG risk in the relevant literature justifies the need for their further scientific investigation. A particularly interesting context for this task is offered by the banking industry, where financial institutions face both strong incentives to expand the scale of their activities and high reputational risk sensitivity. Given the above, this paper aims to systematize and enhance the theoretical underpinnings of the relationship between firm size and ESG risk in banks, highlighting its likely non-linear character, and to investigate it empirically in the cross-section of the international banking industry. This research employs uni- and multivariate, and linear and non-linear regression analyses applied to a sample of 668 banks that were assigned the Morningstar Sustainalytics ESG Risk Rating for the year 2021. The results demonstrate that, although, on average, size seems to be associated negatively with ESG risk in the cross-section, the relationship is in fact non-linear and follows a U-shaped pattern. The findings are robust regarding the impact of both country-specific contextual factors and outliers. This study emphasizes the importance of diseconomies of scale in ESG risk management, thus offering some important lessons and recommendations for bank executives and equity investors.

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“…Several studies have found diverse results regarding the relationship between ESG disclosure and company performance. Pu (2023) found that ESG activities can improve stakeholder trust in company policies, increase brand awareness, and build a good brand image. Thus, provide a competitive advantage that can lead to increased sales.…”

Section: Figure 1 Firms That Published Sustainability Report In 2017-...mentioning

confidence: 99%

ESG and firm performance: The moderating role of gender diversity

Marheni,

Sherry,

Yulfiswandi

2024

Optim. J. Ekon. dan Pembang.

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Disclosure of ESG from companies around the world has experienced a drastic increase, this phenomenon is also accompanied by an increase in socially responsible investment. This study investigates the moderating role of gender diversity in the relationship between the individual dimensions of ESG (environmental disclosure, social disclosure, and governance disclosure) and the company’s performance (Tobin's Q) in IDX companies. The research design is causal-explanatory. Based on the theory of previous findings, hypotheses were developed and tested by applying panel data regression to 42 IDX companies in the period of 2017 to 2021. The results found that disclosure of governance had a significant negative effect on company performance as measured by Tobin's Q. Moderation of gender diversity plays a role in weakening the relationship between governance disclosure with company performance. Several managerial implications are proposed based on this research. Managers may consider other ways to address stakeholder concerns about environmental and social performance. Indonesian policymakers can authorize regulations regarding ESG disclosure requirements to boost firm performance and lead to economic stability.

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A non-linear assessment of ESG and firm performance relationship: evidence from China

Cited by 11 publications

References 62 publications

Impact of profitability elements on the food and beverage industry in Malaysia

Impact of profitability elements on the food and beverage industry in Malaysia

Does Firm Size Matter for ESG Risk? Cross-Sectional Evidence from the Banking Industry

ESG and firm performance: The moderating role of gender diversity

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