The Effects of ESG Combined Score on Business Performance of Enterprises in the Transportation Industry

Thi Ngan Pham, Phung Phi Tran, Minh-Hieu Le, Hoang Nhi Vo, Cong Dat Pham and Hai-Dang Nguyen
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Thi Ngan Pham: Faculty of Business Administration, Ton Duc Thang University, No. 19 Nguyen Huu Tho Street, Tan Phong Ward, District 7, Ho Chi Minh City 700000, Vietnam
Phung Phi Tran: Faculty of Business Administration, Ton Duc Thang University, No. 19 Nguyen Huu Tho Street, Tan Phong Ward, District 7, Ho Chi Minh City 700000, Vietnam
Minh-Hieu Le: Faculty of Business Administration, Ton Duc Thang University, No. 19 Nguyen Huu Tho Street, Tan Phong Ward, District 7, Ho Chi Minh City 700000, Vietnam
Hoang Nhi Vo: Faculty of Business Administration, Ton Duc Thang University, No. 19 Nguyen Huu Tho Street, Tan Phong Ward, District 7, Ho Chi Minh City 700000, Vietnam
Cong Dat Pham: Faculty of Business Administration, Ton Duc Thang University, No. 19 Nguyen Huu Tho Street, Tan Phong Ward, District 7, Ho Chi Minh City 700000, Vietnam
Hai-Dang Nguyen: Faculty of Business Administration, Ton Duc Thang University, No. 19 Nguyen Huu Tho Street, Tan Phong Ward, District 7, Ho Chi Minh City 700000, Vietnam

Sustainability, 2022, vol. 14, issue 14, 1-17

Abstract: A plethora of present studies has the purpose of analyzing the connection related to the effect of environmental, social, and governance (ESG) on business performance. However, it has still not been able to bring out comprehensive results because of using a single metric to measure performance. Due to that, this research will: (i) use the data envelopment analysis (DEA) method to measure transportation firms’ performance and (ii) use OLS regression to explore the relationship between ESG combined score and business performance. In the first stage, we found out that 43 out of 56 firms work inefficiently. The managers of those companies should utilize their resources and refer to the benchmarking as a sample to follow. The environmental and social scores positively affect business performance in the second stage. Thus, managers should consider ESG as an investment, primarily when transportation is categorized as an “environmentally sensitive industry”. Besides, investors should pay more attention to a company that has ESG activities because that firm has the chance to improve its business performance and deal with its commitments.

Keywords: data envelopment analysis; ESG; business performance; transportation industry (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:14:y:2022:i:14:p:8354-:d:858103

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