Investigating the Relationship Between ESG Performance and Financial Performance During the COVID-19 Pandemic: Evidence from the Hotel Industry

Andrii Kaminskyi, Valerii Osetskyi, Nuno Almeida and Maryna Nehrey ()
Additional contact information
Andrii Kaminskyi: Department of Economic Cybernetics, Taras Shevchenko National University of Kyiv, 01033 Kyiv, Ukraine
Valerii Osetskyi: Department of Economic Theory, Macro- and Microeconomics, Taras Shevchenko National University of Kyiv, 03022 Kyiv, Ukraine
Nuno Almeida: CiTUR, ESTM, Polytechnic of Leiria, Rua do Conhecimento, 2520-641 Peniche, Portugal
Maryna Nehrey: Department of Economic Cybernetics, National University of Life and Environmental Sciences of Ukraine, Heroiv Oborony 16a, 03041 Kyiv, Ukraine

JRFM, 2025, vol. 18, issue 3, 1-21

Abstract: The global economy was profoundly impacted by the emergence of the COVID-19 pandemic, with the hotel industry being among the sectors most severely affected. This study explores the relationship between environmental, social, and governance (ESG) performance and financial performance during the pandemic, focusing on 35 of the world’s largest hotel companies. A structured methodology was employed to assess short-term financial resilience using the shock depth (SD) and recovery rate (RR) indicators and long-term performance through the value-added weekly index (VAWI) and K-ratio. The findings of this study indicated that faster recovery was associated with greater capitalization. Furthermore, analysis of ESG scores indicated a median increase from 2019 to 2022, particularly in the figures of the environmental component. Despite these increases, pre-pandemic ESG scores demonstrated limited influence on short-term financial performance, though a correlation was observed between governance scores (as ESG score subscores) and long-term K-ratios. This finding suggests potential trade-offs between improving financial performance and maintaining governance standards in the sense of ESG scores. This study points to the intricate interplay between ESG and financial metrics during systemic crises, providing valuable insights for risk management and strategic planning in the hospitality business. The implications of these findings extend to the enhancement of resilience and the alignment of ESG strategies with financial sustainability.

Keywords: ESG performance; financial resilience; hotel industry; COVID-19 pandemic; shock depth; recovery rate; value-added weekly index; K-ratio; risk–return correspondence; sustainability (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2025
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/1911-8074/18/3/126/pdf (application/pdf)
https://www.mdpi.com/1911-8074/18/3/126/ (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:18:y:2025:i:3:p:126-:d:1602214

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 ().