ESG performance and litigation risk

Hua Zhang, Huaqing Zhang, Li Tian, Shengli Yuan and Yongqian Tu

Finance Research Letters, 2024, vol. 63, issue C

Abstract: We focus on the relationship between firms’ environmental, social, and governance (ESG) responsibility performance and litigation risk. This study finds that improving firm ESG responsibility performance is conducive to reducing firm litigation risk. At the same time, internal control plays an intermediary role in the impact of firms’ ESG responsibility performance on firm litigation risk. Improving ESG responsibility performance can increase the firms’ internal control mechanisms to reduce litigation risk.

Keywords: ESG performance; Litigation risk; Mediating role; Internal control (search for similar items in EconPapers)
JEL-codes: G32 G34 G38 K22 M14 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:63:y:2024:i:c:s1544612324003416

DOI: 10.1016/j.frl.2024.105311

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