Student or educator? Sign up with your school email and get 6 months of Pro free.
CoChat
Sign Up
Cited by 198

The DOI matches its Crossref record; 7 of the 7 references it cites were found in a registry or an index.

Understanding the effects of Environment, Social, and Governance conduct on financial performance: Arguments for a process and integrated modelling approach

Open access
Lee, Michael T., Suh, Ikseon·2022·Sustainable Technology and Entrepreneurship
DOI 10.1016/j.stae.2022.100004
Open this paper in CoChat — free account

Abstract

To date, an overwhelming number of research findings on Environment, Social, and Governance (ESG) conduct and financial performance remains inconclusive. Furthermore, research has not identified nor explained the “underlying mechanisms” behind this relationship. To encourage future research, we discuss the mechanisms by identifying the first-order, mediating, and moderating variables. We synthesize recent studies for emerging themes and implications; argue for a process and integrated approach for modelling causality between ESG conduct and financial performance variables; and suggest methods to analyze the models. We also advocate for researchers to explore the idea that balancing corporate conduct among the E, S, and G components may provide revelations about financial performance. We also discuss how incorporating “greenwashing” in a process and integrated model may explain the ESG conduct and financial performance link, or more than likely the lack of it.

Overview

The claims and statistics of this paper haven’t been checked yet.

Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.

A few free checks a day · papers already verified open instantly · results are public

Integrity signals

Registry

Crossref · 10.1016/j.stae.2022.100004

Cites

7 of 7 references verified0 citation errors · 0 not checkable

Statistics

Verification

Claims the paper makes

The claims and statistics of this paper haven’t been checked yet.

Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.

A few free checks a day · papers already verified open instantly · results are public

Self-check

Percentages, sums and reported differences re-computed from the paper’s own numbers.

The self-check needs the paper’s full text.

Citations

Cites

Show all 7 references

Research works printed but not linked: 75

  1. Ahmad, 2021, Revisiting the impact of ESG on financial performance of FTSE350 UK firms: Static and dynamic panel data analysis, Cogent Business & Management, 8, 10.1080/23311975.2021.1900500 · DOI · Paper page
  2. Ajour El Zein, 2020, The role of sustainability in brand equity value in the financial sector, Sustainability, 12, 254, 10.3390/su12010254 · DOI
  3. Alareeni, 2020, ESG impact on performance of US S&P 500-listed firms, Corporate Governance, 20, 1409, 10.1108/CG-06-2020-0258 · DOI · Paper page
  4. Alsayegh, 2020, Corporate economic, environmental, and social sustainability performance transformation through ESG disclosure, Sustainability, 12, 3910, 10.3390/su12093910 · DOI · Paper page
  5. Almeyda, 2019, The influence of environmental, social, and governance (ESG) disclosure on firm financial performance, IPTEK Journal of Proceedings Series, 5, 278, 10.12962/j23546026.y2019i5.6340 · DOI · Paper page
  6. Aouadi, 2018, Do ESG controversies matter for firm value? Evidence from international data, Journal of Business Ethics, 151, 1027, 10.1007/s10551-016-3213-8 · DOI · Paper page
  7. Benner, 2002, Process management and technological innovation: A longitudinal study of the photography and paint industries, Administrative Science Quarterly, 47, 676, 10.2307/3094913 · DOI · Paper page
  8. Berrone, 2017, Does greenwashing pay off? Understanding the relationship between environmental actions and environmental legitimacy, Journal of Business Ethics, 144, 363, 10.1007/s10551-015-2816-9 · DOI · Paper page
  9. Bofinger, 2022, Corporate social responsibility and market efficiency: Evidence from ESG and misvaluation measures, Journal of Banking & Finance, 134, 10.1016/j.jbankfin.2021.106322 · DOI · Paper page
  10. Buallay, 2019, Is sustainability reporting (ESG) associated with performance? Evidence from the European banking sector, Management of Environmental Quality: An International Journal, 30, 98, 10.1108/MEQ-12-2017-0149 · DOI · Paper page
  11. Capelle-Blancard, 2019, Every little helps? ESG news and stock market reaction, Journal of Business Ethics, 157, 543, 10.1007/s10551-017-3667-3 · DOI · Paper page
  12. Cappucci, 2018, The ESG integration paradox, Journal of Applied Corporate Finance, 30, 22, 10.1111/jacf.12296 · DOI
  13. Cek, 2020, Does environmental, social and governance performance influence economic performance?, Journal of Business Economics and Management, 21, 1165, 10.3846/jbem.2020.12725 · DOI · Paper page
  14. Chatterji, 2016, Do ratings of firms converge? Implications for managers, investors and strategy researchers, Strategic Management Journal, 37, 1597, 10.1002/smj.2407 · DOI · Paper page
  15. Chouaibi, 2021, ESG and corporate financial performance: the mediating role of green innovation: UK common law versus Germany civil law, EuroMed Journal of Business
  16. Dalal, 2019, ESG and corporate financial performance: A panel study of Indian companies, IUP Journal of Corporate Governance, 18, 44
  17. de Franco, 2020, ESG controversies and their impact on performance, The Journal of Investing, 29, 33, 10.3905/joi.2019.1.106 · DOI
  18. Dixon-Fowler, 2013, Beyond “does it pay to be green?” A meta-analysis of moderators of the CEP–CFP relationship, Journal of Business Ethics, 112, 353, 10.1007/s10551-012-1268-8 · DOI · Paper page
  19. Dorfleitner, 2015, Measuring the level and risk of corporate responsibility–An empirical comparison of different ESG rating approaches, Journal of Asset Management, 16, 450, 10.1057/jam.2015.31 · DOI · Paper page
  20. Drempetic, 2020, The influence of firm size on the ESG score: Corporate sustainability ratings under review, Journal of Business Ethics, 167, 333, 10.1007/s10551-019-04164-1 · DOI · Paper page
  21. Du, 2015, How the market values greenwashing? Evidence from China, Journal of Business Ethics, 128, 547, 10.1007/s10551-014-2122-y · DOI · Paper page
  22. Duque-Grisales, 2021, Environmental, social and governance (ESG) scores and financial performance of multilatinas: Moderating effects of geographic international diversification and financial slack, Journal of Business Ethics, 168, 315, 10.1007/s10551-019-04177-w · DOI · Paper page
  23. Eccles, 2011, The origins and meanings of names describing investment practices that integrate a consideration of ESG issues in the academic literature, Journal of Business Ethics, 104, 389, 10.1007/s10551-011-0917-7 · DOI · Paper page
  24. Ellili, 2020, Environmental, social and governance disclosure, ownership structure and cost of capital: Evidence from the UAE, Sustainability, 12, 1
  25. El Khoury, 2021, ESG and financial performance of banks in the MENAT region: concavity–convexity patterns, Journal of Sustainable Finance & Investment
  26. Endrikat, 2014, Making sense of conflicting empirical findings: A meta-analytic review of the relationship between corporate environmental and financial performance, European Management Journal, 32, 735, 10.1016/j.emj.2013.12.004 · DOI · Paper page
  27. Farooq, 2015, Financial centers and the relationship between ESG disclosure and firm performance: Evidence from an emerging market, Journal of Applied Business Research, 31, 1239, 10.19030/jabr.v31i4.9298 · doi:10.19030/jabr.v31i4.9298
  28. Fatemi, 2018, ESG performance and firm value: The moderating role of disclosure, Global Finance Journal, 38, 45, 10.1016/j.gfj.2017.03.001 · DOI · Paper page
  29. Feng, 2016, The impact of corporate social responsibility on brand value: An empirical study of top 100 global brands, International Journal of Business and Social Science, 7, 61
  30. Friede, 2015, ESG and financial performance: aggregated evidence from more than 2000 empirical studies, Journal of Sustainable Finance & Investment, 5, 210, 10.1080/20430795.2015.1118917 · DOI · Paper page
  31. Gillan, 2021, Firms and social responsibility: A review of ESG and CSR research in corporate finance, Journal of Corporate Finance, 66, 10.1016/j.jcorpfin.2021.101889 · DOI · Paper page
  32. Gillan, 2007, The evolution of shareholder activism in the United States, Journal of Applied Corporate Finance, 19, 55, 10.1111/j.1745-6622.2007.00125.x · DOI · Paper page
  33. Gupta, 2006, The interplay between exploration and exploitation, Academy of Management Journal, 49, 693, 10.5465/amj.2006.22083026 · DOI · Paper page
  34. Gyonyorova, 2021, ESG ratings: relevant information or misleading clue? Evidence from the S&P Global 1200, Journal of Sustainable Finance & Investment
  35. Han, 2016, Empirical study on relationship between corporate social responsibility and financial performance in Korea, Asian Journal of Sustainability and Social Responsibility, 1, 61, 10.1186/s41180-016-0002-3 · DOI · Paper page
  36. He, 2020, How brand equity affects firm productivity: The role of R&D and human capital, Economic Research-Ekonomska Istrazivanja, 33, 2976, 10.1080/1331677X.2019.1686045 · doi:10.1080/1331677x.2019.1686045
  37. Huarng, 2021, Challenges and opportunities of new research methods in innovation, entrepreneurship, and knowledge, Journal of Business Research, 134, 101, 10.1016/j.jbusres.2021.04.058 · DOI
  38. Ionescu, 2019, The impact of ESG factors on market value of companies from travel and tourism industry, Technological and Economic Development of Economy, 25, 820, 10.3846/tede.2019.10294 · DOI · Paper page
  39. Khan, 2019, Corporate governance, ESG, and stock returns around the world, Financial Analysts Journal, 75, 103, 10.1080/0015198X.2019.1654299 · DOI · Paper page
  40. Kotsantonis, 2016, ESG integration in investment management: Myths and realities, Journal of Applied Corporate Finance, 28, 10, 10.1111/jacf.12169 · DOI · Paper page
  41. Landi, 2019, Towards a more ethical market: the impact of ESG rating on corporate financial performance, Social Responsibility Journal, 15, 11, 10.1108/SRJ-11-2017-0254 · DOI · Paper page
  42. Lee, 2016, Understanding employee motivation and organizational performance: Arguments for a set-theoretic approach, Journal of Innovation & Knowledge, 1, 162, 10.1016/j.jik.2016.01.004 · DOI
  43. Lee, 2020, Understanding Firm Growth and Revival through Ambidexterity: An Accounting and Organizational Perspective, Journal of Business Accounting and Finance Perspectives, 2, 8, 10.35995/jbafp2020008 · doi:10.35995/jbafp2020008
  44. Lee, 2020, Innovative sustainability and stakeholders’ shared understanding: The secret sauce to “performance with a purpose, Journal of Business Research, 108, 20, 10.1016/j.jbusres.2019.10.020 · DOI
  45. Lee, 2022, Signaling green! firm ESG signals in an interconnected environment that promote brand valuation, Journal of Business Research, 138, 1, 10.1016/j.jbusres.2021.08.061 · DOI · Paper page
  46. Loh, 2020, Impact of sustainability reporting on brand value: An examination of 100 leading brands in Singapore, Sustainability, 12, 1, 10.3390/su12187392 · DOI
  47. Marquis, 2016, Scrutiny, norms, and selective disclosure: A global study of greenwashing, Organization Science, 27, 483, 10.1287/orsc.2015.1039 · DOI · Paper page
  48. Mervelskemper, 2017, Enhancing market valuation of ESG performance: Is integrated reporting keeping its promise?, Business Strategy and the Environment, 26, 536, 10.1002/bse.1935 · DOI · Paper page
  49. Minutolo, 2019, Exploring environmental, social, and governance disclosure effects on the S&P 500 financial performance, Business Strategy and the Environment, 28, 1083, 10.1002/bse.2303 · DOI · Paper page
  50. Morgan, 1994, The commitment-trust theory of relationship marketing, Journal of Marketing, 58, 20, 10.1177/002224299405800302 · DOI · Paper page
  51. Nekhili, 2021, The ESG–financial performance relationship: Does the type of employee board representation matter?, Corporate Governance: An International Review, 29, 134, 10.1111/corg.12345 · DOI · Paper page
  52. Nekhili, 2019, ESG performance and market value: the moderating role of employee board representation, The International Journal of Human Resource Management, 1
  53. Nirino, 2021, Corporate controversies and company's financial performance: Exploring the moderating role of ESG practices, Technological Forecasting and Social Change, 162, 10.1016/j.techfore.2020.120341 · DOI · Paper page
  54. Ng, 2015, Business sustainability performance and cost of capital, Journal of Corporate Finance, 34, 128, 10.1016/j.jcorpfin.2015.08.003 · DOI · Paper page
  55. Ortas, 2015, The Environmental, Social, Governance, and Financial Performance Effects on Companies that Adopt the United Nations Global Compact, Sustainability, 7, 1932, 10.3390/su7021932 · DOI
  56. Peloza, 2009, The challenge of measuring financial impacts from investments in corporate social performance, Journal of Management, 35, 1518, 10.1177/0149206309335188 · DOI · Paper page
  57. Petitjean, 2019, Eco-friendly policies and financial performance: Was the financial crisis a game changer for large US companies?, Energy Economics, 80, 502, 10.1016/j.eneco.2019.01.028 · doi:10.1016/j.eneco.2019.01.028
  58. Pimonenko, 2020, Green brand of companies and greenwashing under sustainable development goals, Sustainability, 12, 1679, 10.3390/su12041679 · DOI · Paper page
  59. Sharfman, 2008, Environmental risk management and the cost of capital, Strategic Management Journal, 29, 569, 10.1002/smj.678 · DOI · Paper page
  60. Shakil, 2019, Do environmental, social and governance performance affect the financial performance of banks? A cross-country study of emerging market banks, Management of Environmental Quality: An International Journal, 30, 1331, 10.1108/MEQ-08-2018-0155 · DOI · Paper page
  61. Sirgy, 2002, Measuring corporate performance by building on the stakeholders model of business ethics, Journal of Business Ethics, 35, 143, 10.1023/A:1013856421897 · DOI · Paper page
  62. Stettner, 2014, Ambidexterity under scrutiny: Exploration and exploitation via internal organization, alliances, and acquisitions, Strategic Management Journal, 35, 1903, 10.1002/smj.2195 · DOI · Paper page
  63. Stevens, 2020, Stock performance study shows companies should take environmental and social factors seriously, CNBC, U.S. Stock Markets
  64. Szabo, 2020, Perceived greenwashing: The effects of green marketing on environmental and product perceptions, Journal of Business Ethics, 171, 719, 10.1007/s10551-020-04461-0 · DOI · Paper page
  65. Tamimi, 2017, Transparency among S&P 500 companies: An analysis of ESG disclosure scores, Management Decision, 55, 1660, 10.1108/MD-01-2017-0018 · DOI · Paper page
  66. Tarmuji, 2016, The impact of environmental, social and governance practices (ESG) on economic performance: Evidence from ESG score, International Journal of Trade, Economics and Finance, 7, 67, 10.18178/ijtef.2016.7.3.501 · DOI · Paper page
  67. Torelli, 2020, Greenwashing and environmental communication: Effects on stakeholders' perceptions, Business Strategy and the Environment, 29, 407, 10.1002/bse.2373 · DOI · Paper page
  68. Uotila, 2009, Exploration, exploitation, and financial performance: analysis of S&P 500 corporations, Strategic Management Journal, 30, 221, 10.1002/smj.738 · DOI · Paper page
  69. van Duuren, 2016, ESG integration and the investment management process: Fundamental investing reinvented, Journal of Business Ethics, 138, 525, 10.1007/s10551-015-2610-8 · DOI · Paper page
  70. Velte, 2017, Does ESG performance have an impact on financial performance? Evidence from Germany, Journal of Global Responsibility, 89, 169, 10.1108/JGR-11-2016-0029 · DOI · Paper page
  71. Wong, 2021, Stock market reactions to adverse ESG disclosure via media channels, The British Accounting Review
  72. Woodside, 2013, Moving beyond multiple regression analysis to algorithms: Calling for adoption of a paradigm shift from symmetric to asymmetric thinking in data analysis and crafting theory, Journal of Business Research, 66, 463, 10.1016/j.jbusres.2012.12.021 · DOI · Paper page
  73. Woodside, 2014, Embrace•perform•model: Complexity theory, contrarian case analysis, and multiple realities, Journal of Business Research, 67, 2495, 10.1016/j.jbusres.2014.07.006 · DOI · Paper page
  74. Xie, 2019, Green process innovation, green product innovation, and corporate financial performance: A content analysis method, Journal of Business Research, 101, 697, 10.1016/j.jbusres.2019.01.010 · DOI · Paper page
  75. Yoon, 2018, Does ESG performance enhance firm value? Evidence from Korea, Sustainability, 10, 3635, 10.3390/su10103635 · DOI · Paper page

Cited by

See all 198

Metadata

Authors
Lee, M. T., & Suh, I.
Venue
Sustainable Technology and Entrepreneurship
Publisher
Elsevier BV
Published
2022-01
Volume
1
Issue
1
Pages
100004
ISSN
2773-0328 (ISSN-L)
DOI
10.1016/j.stae.2022.100004
OpenAlex
W4213070733
Cited by
198
References
7
FWCI
32.08
Type
journal article
Language
en
Open access
gold
Licence

About these checks

Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.

Statistics and arithmetic are recomputed, not judged.

Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.

What counts as a claim ›How we measure confidence ›How we check this ›

Are you an author, or do you see a problem with this page? Request a review

How to cite

Cite CoChat for the checks on this page, and the paper for its own findings.

This page
CoChat. (2026). Citation check: Understanding the effects of Environment, Social, and Governance conduct on financial performance: Arguments for a process and integrated modelling approach. https://app.cochat.ai/papers/10.1016/j.stae.2022.100004
The paper
Lee, M. T., & Suh, I. (2022). Understanding the effects of Environment, Social, and Governance conduct on financial performance: Arguments for a process and integrated modelling approach. Sustainable Technology and Entrepreneurship. https://doi.org/10.1016/j.stae.2022.100004

Data sources

Bibliographic data: Semantic Scholar, OpenAlex, Crossref.

Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.