Sep 2026· Corporate Social Responsibility and Environmental Management· 0 citations· 41 references
Abstract
This study analyzes how Environmental, Social, and Governance (ESG) performance affects bankruptcy risk, using data from publicly listed firms across 17 European countries over a 21‐year period. We find that higher ESG scores are significantly associated with lower bankruptcy risk, as proxied by
Z
‐score. In addition, we disaggregate ESG into its Environmental, Social, and Governance components, and find that the latter emerges as the strongest determinant of low bankruptcy risk, while social and environmental factors show weaker and more context‐dependent effects. Our empirical analysis also explores a potential channel through which ESG performance affects bankruptcy risk, and our findings indicate that ESG performance contributes to lower bankruptcy risk partly through improved operating performance (as proxied by ROA) and that its stabilizing effect is particularly stronger among larger firms. The findings highlight the critical role of ESG practices, particularly governance, in enhancing firm resilience and support the integration of ESG considerations into credit risk assessments.
This study examines the relationship between environmental, social, and governance (ESG) performance and bank default risk in the E7 emerging economies over the period 2013–2024. Using a panel dataset of publicly listed banks, the analysis evaluates whether overall ESG performance and its individual dimensions contribu...
Sevgi Eren Dogan, Serkan Çankaya· Sustainability· 0 citations
Environmental, social, and governance (ESG) performance is increasingly viewed as a signal of how seriously companies approach sustainability and governance, rather than simply a tool for financial screening. This study explores how ESG performance relates to organisational capacity and market outcomes among companies...
Manuel-Victoraș Stănilă, C. Profiroiu, Edita Carmen Bokor et al.· European Journal of Sustaina...· 0 citations
This study aims to examine the relationship between corporate governance (CG) quality, measured by a composite Corporate Governance Index (CGI), and Environmental, Social and Governance (ESG) performance across listed firms in 11 Asian economies. Given the growing importance of ESG adoption in emerging markets, thi...
Miranda Tanjung· Social Responsibility Journa...· 0 citations
Purpose: This study examines whether Environmental, Social, and Governance (ESG) performance improves firm performance and investigates the mediating role of asset turnover in explaining how ESG initiatives contribute to financial outcomes among Indonesian listed firms based on stakeholder theory and the resource-based...
This study examines the impact of environmental, social and governance (ESG) performance on financial risk in Jordan, measured through the lending–deposit spread.
A new ESG index and three pillar indices are constructed using annual data from 1990 to 2024. The quantile autoregressive distributed lag (QARDL)...
H. Alqaralleh· Journal of economic and admi...· 0 citations
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