American Corporate Sustainability and Extra-Financial Performance: Is There an Inverted-U Relationship

Nahed Zghidi, Rihab Bousnina () and Samarkand Mokni
Additional contact information
Nahed Zghidi: Commercial High School of Sfax, University of Sfax, Airport Road Km 4.5, BP 1081, Sfax 3018, Tunisia
Rihab Bousnina: Faculty of Economics and Management of Sfax, University of Sfax, Airport Road Km 4, BP 1088, Sfax 3018, Tunisia
Samarkand Mokni: Faculty of Economics and Management of Sfax, University of Sfax, Airport Road Km 4, BP 1088, Sfax 3018, Tunisia

JRFM, 2023, vol. 16, issue 10, 1-18

Abstract: In this paper, we explore the nexus between extra-financial performance (sustainable ESG) and firm performance within a sample of American firms from different vital sectors. In particular, we examine whether extra-financial performance has an effect on company performance. To this end, we have used a non-linear model. The study is based on a sample of 93 American companies over the period 2010–2019. We find that the association between extra-financial performance and firms’ financial performance is nonlinear, exhibiting an inverted U-shaped pattern. In particular, the results emphasize the importance of caution when pursuing ESG initiatives. Enterprise managers should monitor the effect of ESG activities on extra-financial performance and confirm the ESG threshold of their organization.

Keywords: extra-financial performance; corporate sustainability; ESG; financial performance and American corporate (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/1911-8074/16/10/435/pdf (application/pdf)
https://www.mdpi.com/1911-8074/16/10/435/ (text/html)

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:gam:jjrfmx:v:16:y:2023:i:10:p:435-:d:1254304

Access Statistics for this article

JRFM is currently edited by Ms. Chelthy Cheng

More articles in JRFM from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().