 Does corporate social responsibility influence performance persistence? A signal extraction approach with evidence from Fortune 500 companiesBo-Xiang Hsu and Yi-Min Chen Technological Forecasting and Social Change, 2024, vol. 200, issue C Abstract: The study seeks to enhance the current understanding of how corporate social responsibility (CSR) and environmental, social, and governance (ESG) factors influence firm performance. We establish a theoretical framework and provide empirical data on the influence of CSR/ESG on the sustained financial performance of publicly traded Fortune 500 companies between 2018 and 2021. Our model explains the way CSR/ESG activities affect a firm's ongoing financial success by revealing valuable signals to stakeholders. We employed quantile regression analysis to assess the connection, and found that a firm's CSR/ESG initiatives have both immediate and lasting long-term effects. Our findings contribute to and expand the literature on firm performance and sustainable competitive advantage. Companies adopting CSR/ESG can enhance a firm's performance and attain a sustainable competitive advantage. Keywords: CSR/ESG; Performance persistence; Signal extraction; Competitive advantage; ROA (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:200:y:2024:i:c:s0040162523008399 DOI: 10.1016/j.techfore.2023.123154 Access Statistics for this article Technological Forecasting and Social Change is currently edited by Fred Phillips More articles in Technological Forecasting and Social Change from Elsevier |
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