Article2022

Examining impact of ESG score on financial performance of healthcare companies

124 citations0/0 files storedJournal of Global Responsibility

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Corporate Social Responsibility Reporting Environmental Sustainability in Business Corporate Governance and Financial Management

Abstract

Purpose This paper aims to investigate the effect of total and each individual component of environmental, social and governance score (ESG) on financial performance (FP) of healthcare companies. Design/methodology/approach Data for 468 health-care firms for the business year 2020 is sourced from Thomson Reuters to obtain ESG data. Correlation and multivariate regression analysis are done to investigate the relation between ESG activities and firm performance. The analysis has been done on overall data and subsample data to examine the relation across developing vs developed markets. Findings The results of the study suggest that relation between ESG score and FP cannot be generalized. The results show that performing ESG activities positively impact firm performance of healthcare companies in developed economies; however, this relationship would be negative or insignificant in the case of developing economies. Practical implications The results of this study have implications for both practitioners and policymakers. The authors suggest the specific setups in which the relationship between ESG activities and firm performance will be negative or insignificant. These results are beneficial to policymakers who seek to increase the active participation of firms in ESG activities. Originality/value To the best of the authors’ knowledge, this study is the first to explore the relationship of ESG score on FP through the lens of country-level development variables for health-care sector companies.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 124 citations exist upstream.

References

2007The Social Responsibility of Business Is to Increase Its Profits 2015ESG and financial performance: aggregated evidence from more than 2000 empirical studies 2014The Impact of Corporate Sustainability on Organizational Processes and Performance 2001Shareholder value, stakeholder management, and social issues: what's the bottom line?2010Corporate Social Responsibility as a Conflict Between Shareholders 2005The impact of culture and governance on corporate social reporting 2006Corporate Social Responsibility and Resource-Based Perspectives 1995Instrumental Stakeholder Theory: A Synthesis of Ethics and Economics

Cited by

2023Exploring the relationship among ESG, innovation, and economic and financial performance: evidence from the energy sector 2023Do ESG disclosures lead to superior firm performance? A method of moments panel quantile regression approach 2023Impact of Environmental, Social, and Governance Activities on the Financial Performance of Indian Health Care Sector Firms: Using Competition as a Moderator 2024Navigating ESG complexity: An in-depth analysis of sustainability criteria, frameworks, and impact assessment

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.