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Zhang Lin, Pan Jiaying, Danni zx. Environmental, social and governance ESG activity and firm performance: Danni zx review and consolidation.
This economically modest relationship suggests ESG activity is unlikely to be primarily motivated by narrow measures of CFP. Further scholarship viewing ESG as part of overall firm activity would be constructive. Economic literature: papersarticlessoftwarechaptersbooks. Interest in why firms conduct environmental, social and governance ESG activity is longstanding and increasing.
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This paper reviews alternative accounts for the relationship and finds that the weight of empirical evidence shows a positive, Danni zx, statistically significant but economically modest ESGP—CFP link, consistent with theoretical expectations.
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