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Impact of global financial crisis on firm performance in UK: Moderating role of ESG, corporate governance and firm size

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Ahmad, Nisar, Mobarek, Asma, Raid, Moodhi·2023·Cogent Business & Management
DOI 10.1080/23311975.2023.2167548
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Abstract

This paper investigates the impact of global financial crisis (GFC; 2007-10) on financial and non-financial performance of FTSE350 UK firms.This study tests the relationships among GFC, firm financial performance and environmental, social and governance (ESG; for non-financial performance) and estimates the moderating role of ESG, corporate governance (CG) and firm size in these relationships.Panel data from 2002 to 2018 across 351 UK firms are used.For estimation, random effect model is found suitable to investigate the relationship between financial crisis and firm performance (financial performance as well as ESG performance).The results explain that financial as well as ESG performance of the firm declined during the financial crisis period.Firm size is a moderator in the relationship of financial crisis and ESG performance of the firm.Further findings of the study explain that ESG, firm size and CG are the moderators in the relationship of GFC and firm financial performance.The results of the study are data based and can be used for policy implications.Firms can employ ESG, CG and firm size as strategy tools to enhance their performance especially during the financial crisis periods.

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  • Monetary policy actions in developed economies to stabilise domestic markets can create spillover effects of heightened financial turmoil in developing regions.

    “The recent empirical investigation also shows that the monetary policy actions in the developed economies in stabilising the domestic markets are likely to create the spillover effect of heightened financial turmoil in the developing regions (Hou et al., 2025;Ahmad et al., 2023).”

    From The Interactions Between Political Economy and Global Financial Crises: A Case Study of the 2008 Global Recession (2026) · cites this paper as Ahmad et al., 2023

    The Introduction (page unavailable) says prolonged loose monetary policy in advanced countries contributed to the global financial crisis. It does not say those policies were intended to stabilise domestic markets or show that they caused heightened financial turmoil in developing regions; the paper’s empirical focus is UK firm performance. (LLM, conf=0.76)

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Cited by

Sorted by citations

Authors
Ahmad, N., Mobarek, A., & Raid, M.
Affiliations
  • University of Sargodha (PK)
  • Cardiff University (GB)
  • Arab Open University (OM)
Corresponding author
Ahmad, Nisar
ORCID
Venue
Cogent Business & Management
Publisher
Informa UK Limited
Published
2023-01-26
Volume
10
Issue
1
ISSN
2331-1975 (ISSN-L)
DOI
10.1080/23311975.2023.2167548
OpenAlex
W4318163980
Cited by
69
References
0
Citations by year
2026: 16 · 2025: 29 · 2024: 19 · 2023: 5
FWCI
12.21
Type
journal article
Language
en
Open access
Licence
Locations
  • Cogent Business & Management (publishedVersion, cc-by)
  • ORCA Online Research @Cardiff (Cardiff University) (acceptedVersion)
  • Econstor (Econstor) (submittedVersion, cc-by)
  • RePEc: Research Papers in Economics (submittedVersion)
  • DOAJ (DOAJ: Directory of Open Access Journals) (submittedVersion, cc-by-sa)
Funders
research
Topics
  • Social Sciences › Business, Management and Accounting › Strategy and Management › Corporate Social Responsibility Reporting
  • Social Sciences › Business, Management and Accounting › Strategy and Management › Corporate Governance and Financial Management
  • Social Sciences › Business, Management and Accounting › Accounting › Corporate Finance and Governance
Keywords
2008 financial crisis, firm performance, ESG performance, corporate governance, firm size, moderating effect, financial performance, non-financial performance, UK firms

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