ESG dimensions, firm performance and corporate governance systems

Zied Ftiti, Maher Jeriji, Waël Louhichi, Yasmine Mensi and Amel Zenaidi

International Journal of Business Governance and Ethics, 2024, vol. 18, issue 4/5, 492-521

Abstract: This study aims to investigate the ambiguous relationship between corporate sustainable practices [in the environmental, social and governance (ESG) dimensions] and their financial performance in four countries (the USA, Germany, Italy, and Japan) with different national corporate governance systems (Anglo-Saxon, Germanic, Latin, and Japanese) over the period 2010-2018. We analyse the impact of the global ESG score and disaggregated ESG scores on firm performance with both accounting and market measures. Using a panel generalised method of moments system model, we show the existence of a positive relationship between ESG performance and corporate financial performance only for countries representing the Germanic and Latin governance systems, and this is mainly explained by the significant effect of the governance pillar.

Keywords: environmental; social and governance; ESG performance; corporate financial performance; CFP; market value; national governance systems. (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=139684 (text/html)
Access to full text is restricted to subscribers.

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:ids:ijbget:v:18:y:2024:i:4/5:p:492-521

Access Statistics for this article

More articles in International Journal of Business Governance and Ethics from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().