The relationship of ESG controversies performance and firm value. The moderating influence of stakeholder engagement and stakeholder orientation.

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2021-11-11

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en

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This paper researches the effect of ESG controversies performance on firm value. A positive effect of ESG controversies performance on firm value is assumed. Stakeholder engagement is included as a moderator to correct for the influences of the alignment of the firm’s and stakeholders’ preferences. In addition, stakeholder orientation is included as a moderator to correct for differences in business culture, government policy and law enforcement on the country level. The research covers the period 2015-2020 and is based on a global sample of listed firms. The applied method is panel data and includes two- and three-way interaction terms and split sample analyses. The results show that ESG controversies performance has solely a positive effect on the firm value of firms listed in stakeholder oriented countries.

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Faculteit der Managementwetenschappen