Work

American Corporate Sustainability and Extra-Financial Performance: Is There an Inverted-U Relationship

Year: 2023

Type: article

Abstract: In this paper, we explore the nexus between extra-financial performance (sustainable ESG) and firm performance within a sample of American firms from different vital sectors. In particular, we examine whether extra-financial performance has an effect on company performance. To this end, we have used a non-linear model. The study is based on a sample of 93 American companies over the period 2010–2019. We find that the association between extra-financial performance and firms’ financial performance is nonlinear, exhibiting an inverted U-shaped pattern. In particular, the results emphasize the importance of caution when pursuing ESG initiatives. Enterprise managers should monitor the effect of ESG activities on extra-financial performance and confirm the ESG threshold of their organization.

Source: Journal of risk and financial management

DOI: 10.3390/jrfm16100435

Authors: Nahed Zghidi, Rihab Bousnina, Samarkand Mokni

Institutions: University of Sfax, Faculty of Economics and Management of Sfax

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $1,557

OpenAlex ID: W4387399403

FWCI: 0.578

Cites: 70

Cited by: 4

Related to: 10