THE MODERATING EFFECT OF BOARD CHARACTERISTICS IN THE RELATIONSHIP BETWEEN ESG AND CORPORATE FINANCIAL PERFORMANCE

Heonyong Jung
Additional contact information
Heonyong Jung: Namseoul University, Korea

Studies in Business and Economics, 2024, vol. 19, issue 2, 110-119

Abstract: This study provides a contribution by filling the gap in existing research through an analysis of the relationship between ESG performance and corporate financial performance, as well as the moderating role of board characteristics in between. Using panel data from Chinese A-share listed companies from 2018 to 2022 and employing a fixed-effects model, the study draws the following key conclusions. First, it discovered that ESG scores have a positive and significant impact on the financial performance of Chinese A-share listed companies. Second, the role of board independence as a moderating variable in the relationship between ESG and corporate financial performance was not statistically significant. Third, ownership concentration in Chinese companies was found to play a moderating role in the relationship between ESG performance and corporate financial performance. The results suggest that, in the case of Chinese companies, ownership concentration by management appears to promote ESG activities and consequently enhance financial performance more than maintaining an independent board.

Keywords: ESG; financial performance; board independence; ownership concentration (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://magazines.ulbsibiu.ro/eccsf/RePEc/blg/journl/19208jung.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:blg:journl:v:19:y:2024:i:2:p:110-119

Access Statistics for this article

More articles in Studies in Business and Economics from Lucian Blaga University of Sibiu, Faculty of Economic Sciences Lucian Blaga University of Sibiu, Faculty of Economic Sciences Dumbravii Avenue, No 17, postal code 550324, Sibiu, Romania. Contact information at EDIRC.
Bibliographic data for series maintained by Mihaela Herciu ().