The Effect of Environmental, Social, and Governance (ESG) on the Persistence of Firm Value: Evidence from Survival Analysis
Year: 2025
Type: article
Abstract: This study examines the effect of environmental, social, and governance (ESG) performance on the persistence of firm value among publicly listed companies in Taiwan from 2016 to 2023, using survival analysis. This approach addresses a gap in the literature, which has largely overlooked the temporal dimension of firm value. The findings indicate that only higher social scores are significantly associated with a longer duration of firm value persistence, whereas environmental and governance scores do not exhibit this effect. Furthermore, the analysis reveals that within the social pillar, only product quality and safety contribute meaningfully to sustaining firm value. Although previous studies have often linked sustainability practices to higher firm value, the present findings suggest that such effects may not endure over time. These results underscore the importance of aligning ESG initiatives with core business strategies and enhancing disclosure credibility to ensure authentic commitment.
Source: Accounting and Auditing
Authors: Yen-Yu Liu, Pin-Sheng Lee
Institutions: Soochow University, National Open University
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $1,207
OpenAlex ID: W4409366818