Summary Sustainability and firm performance: the role of environmental, social and governance disclosure and green innovation | Emerald Insight doi.org
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One Line
Green innovation and ESG disclosure boost financial performance, highlighting the significance of sustainability.
Slides
Slide Presentation (9 slides)
Key Points
- Sustainability tools, such as green innovation and environmental, social and governance reporting (ESG), have a significant impact on financial performance.
- The social and governance dimensions of ESG disclosure positively affect financial performance.
- Green innovation positively affects financial performance, particularly with a moderate investment.
- The joint effect of ESG disclosure and green innovation enhances the positive impact on financial performance.
- This study fills a gap in the literature by comprehensively investigating the relationship between sustainability tools and financial performance.
Summaries
17 word summary
Green innovation and certain dimensions of ESG disclosure positively impact financial performance, emphasizing the importance of sustainability.
69 word summary
This study analyzes the link between sustainability tools and financial performance in firms, focusing on green innovation and ESG disclosure. The results reveal that green innovation and certain dimensions of ESG disclosure (social and governance) have a positive effect on financial performance. The positive relationship between green innovation and financial performance holds across different quantiles. The study also highlights the importance of considering sustainability from a social movement perspective.
136 word summary
This study examines the relationship between sustainability tools and financial performance in firms, specifically focusing on green innovation and environmental, social, and governance (ESG) disclosure. The empirical analysis looks at 211 S&P 500 firms from 2011 to 2019 using the quantile estimation method. The results show that both green innovation and certain dimensions of ESG disclosure (social and governance) have a positive impact on financial performance. The positive relationship between green innovation and financial performance is observed across different quantiles. When considering the joint effect of ESG disclosure and green innovation, the study finds that the positive impact of ESG disclosure dimensions is more pronounced with a moderate investment in green innovation. This research contributes to understanding the relationship between sustainability tools and financial performance, emphasizing the importance of considering sustainability from a social movement perspective.
359 word summary
This study investigates the relationship between sustainability tools and financial performance in firms. The researchers focus on two specific tools: green innovation and environmental, social, and governance (ESG) disclosure. The empirical study analyzes a sample of 211 S&P 500 firms over the period from 2011 to 2019. The quantile estimation method is used to examine the data.
The results of the study indicate that both green innovation and certain dimensions of ESG disclosure (specifically, the social and governance dimensions) have a positive impact on financial performance. This suggests that sustainability tools can significantly affect a firm's financial performance. The positive relationship between green innovation and financial performance is observed across different quantiles, ranging from the 10th quantile to the 70th quantile. This finding suggests that a moderate investment in green innovation is necessary for achieving positive financial performance.
When considering the joint effect of ESG disclosure and green innovation, the study finds that the positive impact of certain ESG disclosure dimensions on financial performance is more pronounced when there is a moderate investment in green innovation. This suggests that the combination of these sustainability tools can have a synergistic effect on financial performance.
The study contributes to the existing literature by comprehensively investigating the relationship between sustainability tools and financial performance. It highlights the important role of these tools in driving financial performance. The study also emphasizes the need to consider sustainability from a social movement perspective, as this aspect has been less studied in the literature. Overall, this research adds to the understanding of how ESG disclosure and green innovation can contribute to a firm's financial success.
The authors express their gratitude to the associate editor and anonymous referees for their valuable suggestions to improve the quality of the article.
In conclusion, this study demonstrates that green innovation and certain dimensions of ESG disclosure have a positive impact on financial performance. The findings suggest that firms should consider integrating these sustainability tools into their business strategies to enhance their financial performance. This research contributes to the understanding of the relationship between sustainability tools and financial performance and highlights the importance of considering sustainability from a social movement perspective.