The impact of corporate social responsibility on the financial performance of renewable energy firms

Luis René Vásquez-Ordóñez, Carlos Lassala, Klaus Ulrich and Samuel Ribeiro-Navarrete

Economic Research-Ekonomska Istraživanja, 2023, vol. 36, issue 2, 2174152

Abstract: Tackling environmental pollution and climate change is a global challenge. Therefore, sustainability has become a hugely relevant topic in recent years. In their decision making, investors increasingly consider the non-financial performance of companies such as their social and environmental impact. However, the business research community has not yet reached a consensus regarding the relationship between corporate social responsibility (CSR) and corporate financial performance. This research contributes to the discussion on this relationship. It does so by assessing the impact of the individual dimensions of the environmental, social and governance (ESG) score on the corporate financial performance of renewable energy firms from a quantitative and qualitative perspective. Fuzzy-set qualitative comparative analysis (fsQCA) reveals complex and equifinal configurations that lead companies to record high and low levels of Tobin’s Q. The results for a sample of 96 energy companies from the Eikon database do not provide strong enough evidence to affirm that the individual dimensions of the ESG score have a decisive effect on the corporate financial performance of renewable energy firms.

Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/1331677X.2023.2174152 (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:taf:reroxx:v:36:y:2023:i:2:p:2174152

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rero20

DOI: 10.1080/1331677X.2023.2174152

Access Statistics for this article

Economic Research-Ekonomska Istraživanja is currently edited by Marinko Skare

More articles in Economic Research-Ekonomska Istraživanja from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().