2026· International journal of research and innovation in social science· Vol 10, pp. 17148-17161· 0 citations
Abstract
In emerging economies, integrating innovation, governance, and ESG criteria poses a strategic challenge, necessitating analyses that align these dimensions. This study, using data from 3483 observations of companies listed on B3 (2015-2022), examined the effects of these factors on economic-financial performance, alongside ESG’s role in mitigating CEO duality and promoting female board representation. Employing the Generalized Method of Moments (GMM), results revealed complex relationships: innovation positively impacted performance, solidifying its role as a competitive driver. CEO duality exhibited progressively negative effects, highlighting risks of power concentration. Female representation yielded ambiguous impacts, suggesting reliance on inclusion policies. ESG practices, though linked to operational costs and greenwashing in isolation, enhanced positive outcomes when combined with diversified boards, underscoring governance-sustainability synergies. Theoretically, the study integrated Stakeholder and Agency Theories, indicating ESG amplifies benefits in collaborative contexts but fails to offset governance gaps. Practically, it recommends balanced governance structures, separation of leadership roles, and gender diversity investments as strategic complements to ESG. Thus, the research underscores the relevance of multifaceted approaches for sustainable performance in emerging markets, offering insights into mitigating risks while leveraging innovation and governance synergies.
Sustainable development is increasingly reshaping corporate strategies, particularly in emerging markets such as India, where environmental, social, and governance (ESG) integration has become pivotal for long‐term value creation. This study examines the impact of ESG performance on firm outcomes for Nifty 500 firms over 2014–2024, considering both aggregated and disaggregated ESG dimensions, while assessing the influence of country‐level governance mechanisms. Using panel regression analysis, the findings reveal that robust ESG practices significantly enhance financial, operational, and market performance, underscoring their strategic relevance. At the disaggregated level, social (SOC) and governance (GOV) performance consistently improve profitability, efficiency, and market valuation, whereas environmental (ENV) initiatives exhibit short‐term negative effects, likely due to compliance and investment costs. Further, country governance indicators, including voice and accountability (VAA), political stability and absence of violence (PSV), government effectiveness (GVE), regulatory quality (REQ), rule of law (ROL), and control of corruption (COC), differentially shape the ESG–performance link. While VAA, PSV, REQ, and GVE enhance ESG's impact, ROL and COC constrain immediate gains, highlighting the role of governance quality in aligning ESG initiatives with firm‐level outcomes. The study provides critical insights for regulators, policymakers, investors, and corporate managers, emphasizing governance as a key enabler of sustainable growth in an emerging market.
Rizwana Khurshid, A. Islam· Business Strategy & Deve...· 0 citations
Environmental, social, and governance (ESG) performance serves not only as a response to urgent climate risks but also as a strategic tool for sustainable value creation. However, the rise in greenwashing suggests gaps in existing governance frameworks. This study examines the Fair Competition Review System (FCRS), a policy aimed at mitigating administrative monopolies by emphasizing market mechanisms. Unlike prior research that focuses primarily on firm‐level factors or macroeconomic interventions, this study situates FCRS within the framework of new institutional economics, constructing a causal chain from institutional pressures to corporate responses. Empirical results demonstrate that the FCRS significantly drives ESG behavior. Mechanism analysis identifies three key pathways: stimulation of green innovation, reduction of financing costs, and optimization of income distribution, each grounded in reduced institutional transaction costs. Further analysis underscores the importance of synergistic governance and highlights several factors that enhance policy effectiveness, including equity incentive systems, audit committees, regional rule‐of‐law environments, and digital infrastructure. A particularly novel finding is that identical external institutional pressures can lead to both substantive ESG implementation and strategic brownwashing, a phenomenon previously underexplored. This study extends the scope of institutional economics and refines the framework for understanding ESG performance drivers. Practically, it offers policymakers and enterprise leaders a roadmap for leveraging institutional pressures to achieve sustainable competitive advantages.
Zhen Wang· Business Ethics, the Environ...· 0 citations
This study examines the impact of Environmental, Social, and Governance (ESG) disclosure on corporate resilience of listed firms on the Vietnamese Stock Exchange by using Bloomberg ESG data. Using Generalized Least Squares (GLS) to address model deficiencies, the findings show that overall ESG disclosure is positively associated with corporate resilience. However, disaggregated results (environmental and governance) reveal negative relationships between environment and governance disclosures with firm profitability, while social disclosure shows no significant effect. The empirical results provide a more nuanced analysis within the Vietnamese context and highlight the differentiated effects of each ESG pillar by assessing ESG both as a composite index and through its disaggregated components. Based on the findings, the paper provides important implications for not only policymakers but also managers of listed companies. Policymakers are encouraged to enhance ESG disclosure frameworks through clear regulatory guidelines, whereas corporate leaders should integrate ESG into risk management and strategic planning to improve long-term performance, compliance, and resilience.
Trang Do Thi Van, Chi Kim Nguyen, Chi-Lam Bao et al.· Journal of economics, financ...· 0 citations
This study investigates how Environmental, Social, and Governance (ESG) performance related to corporate performance among firms listed on Thailand Sustainability Investment (THSI) index from 2018 to 2022, that are part of the Stock Exchange of Thailand (SET). This research utilizes agency theory and stakeholder theory to assess the influence of ESG aspects on company outcomes through Partial Least Squares Structural Equation Modeling (PLS-SEM), emphasizing direct effects and the moderating role of governance. Findings reveal that Environmental, Social and Governance performance impacts firm performance in diverging directions. Environmental performance has a significant negative relationship with Return on Assets (ROA), reflecting the financial impact associated with environmental activities during the investigated period, whereas social performance shows substantial positive relations with ROA. Regarding governance, results show a positive direct effect on ROA, showing enhanced operational efficiency, on other hand, results indicate a negative influence on Tobin’s Q, indicating potential market concerns over monitoring costs. Crucially, significantly strengthening the positive influence of social performance on ROA, governance serves as a selective moderating mechanism. This implies that by reducing agency conflicts, strong internal control ensures social investments are efficiently translated into accounting returns. In contrast, the environmental pillar shows no moderating effect. These results emphasize the importance of dissection ESG indicators. Investors and government bodies should prioritize dimension-specific evaluations above overall rating in order to better align sustainability activities with financial performance.
Pakkamon Charoensuk, Chaimongkol Pholkaew, Kusuma Dampitakse· Asian Economic and Financial...· 0 citations
The incorporation of Environmental, Social, and Governance (ESG) measures into business decision-making has received a lot of attention because of the potential influence on financial performance. This study examines the link between ESG elements and company financial performance, using Unilever as a case study. This study looks at how sustainability activities help to risk reduction, operational efficiency, and long-term value development by analysing ESG reporting in depth. The report emphasises the importance of ESG openness in boosting investor trust, developing brand reputation, and achieving financial success. This study presents a complete framework for understanding the strategic value of ESG in corporate finance by combining stakeholder theory, a resource-based perspective, and signalling theory. The findings show that organisations that effectively implement ESG principles likely to have increased financial stability. The findings are useful for firms, investors, and governments, highlighting the importance of standardised ESG disclosures and sustainable corporate policies.
Devanshi Saini, Namita Sahay· International Journal of Cre...· 0 citations
This study investigates the effect of digital transformation on firms’ environmental, social and governance (ESG) performance and examines how state ownership moderates this relationship. It aims to clarify whether digital capabilities enhance sustainability outcomes across different ownership structures in an emerging market context.
The analysis draws on a panel dataset of industrial manufacturing firms listed in Vietnam from 2018 to 2024. Digital transformation is measured using a text-based index derived from annual reports, constructed through keyword frequency analysis. ESG performance is proxied by ESG disclosure, quantified using the term frequency-inverse document frequency method. Panel regression models with interaction terms assess the moderating effect of state ownership, while subgroup analyses examine heterogeneity across ownership forms.
Digital transformation has a significant positive influence on ESG performance. However, this effect appears to be less pronounced for state-owned enterprises, suggesting that institutional and governance characteristics may attenuate firms’ ability to translate digital investments into sustainability outcomes.
The findings offer insights for policymakers and managers seeking to align digital strategies with sustainability objectives. Enhancing ESG reporting regulations, fostering digital–ESG integration and improving governance mechanisms in state-owned firms may amplify the sustainability benefits of digital transformation.
This study contributes to the literature by providing empirical evidence on the digital transformation–ESG nexus in a transition economy where state influence remains prominent. Methodologically, it introduces a scalable text-mining approach to measuring firm-level digitalization and ESG engagement using corporate disclosures.
Mai-Phuong Nguyen, Minh Thi Ngoc Trieu· Asian Review of Accounting· 0 citations
