Does ESG performance have an impact on financial performance? Evidence from Germany

Research output: Journal contributionsJournal articlesResearchpeer-review

Authors

Purpose: The purpose of this paper is to concentrate on environmental, social and governance performance (ESGP) in total and divided in each component and evaluate their impact on financial performance (FINP). Design/methodology/approach: The study covers a sample selection of companies listed on the German Prime Standard (DAX30, TecDAX, MDAX) for the business years 2010-2014 (412 firm-year observations). A correlation and regression analysis was carried out to evaluate possible links between ESGP as determined by the Asset4 database of Thomson Reuters and accounting and market-based measures of FINP (Return on Assets [ROA] and Tobin’s Q). Findings: ESGP has a positive impact on ROA but no impact on Tobin’s Q. Furthermore, by analyzing the three different components of ESGP, governance performance has the strongest impact on FINP in comparison to environmental and social performance. Originality/value: The analysis makes a key contribution to the empirical corporate social responsibility (CSR) research as the author breaks down ESGP into their three components and include both accounting-based and market-based FINP measures for the German setting for the first time. Not only companies but also regulators and researchers are affected by the notion that CSR and FINP are close together and should be lead to a successful stakeholder management.

Original languageEnglish
JournalJournal of Global Responsibility
Volume8
Issue number2
Pages (from-to)169-178
Number of pages10
ISSN2041-2568
DOIs
Publication statusPublished - 29.08.2017

DOI

Recently viewed

Publications

  1. An empirical investigation of experiences and the link between a servicedominant logic mindset, competitive advantage, and performance of nonprofit organizations
  2. Detection of oscillations with application in the pantograph control
  3. The Integration of Wheelchair Users in Team Handball
  4. Development and prospects of degradable magnesium alloys for structural and functional applications in the fields of environment and energy
  5. Conception and analysis of Cascaded Dual Kalman Filters as virtual sensors for mastication activity of stomatognathic craniomandibular system
  6. Integrating teacher and student workspaces in a technology-enhanced mathematics lecture
  7. A switching observer for sensorless control of an electromagnetic valve actuator for camless internal combustion engines
  8. Simon Denny
  9. Non-destructive transmissive inductive thickness sensor for IoT applications
  10. „Ist das dein Handy oder vibrierst du?“
  11. Histological Comparison of New Biodegradable Magnesium-Based Implants for Maxillofacial Applications
  12. What workers want: job satisfaction in the U.S.
  13. How and where to map supply and demand of ecosystem services for policy-relevant outcomes?
  14. Introduction
  15. A hybrid hydraulic piezo actuator modeling and hysteresis effect identification for control in camless internal combustion engines
  16. Narrative dialogic reading with wordless picture books
  17. Bush encroachment control and risk management in semi-arid rangelands
  18. Creative Work, Self-Organizing, and Autonomist Potentiality
  19. Globalization and the societal consensus of wealth tax cuts
  20. Fat or lean
  21. Disciplines and Doubts
  22. Experimental and numerical analysis of material flow in porthole die extrusion
  23. Children's interpretation of ambiguous pronouns based on prior discourse
  24. Gender perspectives in resilience, vulnerability and adaptation to global environmental change
  25. MindMatters
  26. Adjust for Windows – Version 1.1
  27. Acknowledging temporal diversity in sustainability transformations at the nexus of interconnected systems
  28. Warum Diderot?
  29. Reference wages and turnover intentions
  30. DASC-PM v1.1
  31. The Boundary Objects Concept: Theorizing Film and Media.
  32. Grand theories and mid-range theories
  33. Optimal grazing management rules in semi-arid rangelands with uncertain rainfall
  34. Prior entry explains order reversals in the attentional blink