ESG Controversies and Firm Performance in India: The Moderating Impact of Government Effectiveness-Reference-Cited by-同舟云学术

ESG Controversies and Firm Performance in India: The Moderating Impact of Government Effectiveness

Published:2023-05-16 Issue: Volume: Page:097215092311514
ISSN:0972-1509
Container-title:Global Business Review
language:en
Short-container-title:Global Business Review

Author:

Mendiratta Anita¹²^ORCID,Singh Shveta¹,Yadav Surendra Singh¹,Mahajan Arvind³

Affiliation:

1. Department of Management Studies, Indian Institute of Technology, New Delhi, Delhi, India

2. Department of Commerce, Keshav Mahavidyalaya, University of Delhi, New Delhi, Delhi, India

3. Lamar Savings Professor of Finance, Mays Business School, Texas A&M University, College Station, Texas, USA

Abstract

The study investigates the impact of environment, social and governance (ESG) controversies on firm performance in India. Utilizing a sample of 1,024 firm-year observations of Indian firms from 2007 to 2018, the study reports that ESG controversies reduce firm performance. Further, after introducing the interaction effect of government effectiveness, the ESG controversies maintain a similar negative influence on performance. Additionally, the interaction effect of government effectiveness and ESG controversies negatively affects performance in response to ESG controversies. The study conducts a sample-split analysis that indicates the moderation effect of government effectiveness is significantly negative only in the post-CSR mandate period. This study is novel in analysing insights on government effectiveness moderation impact on firm performance in response to ESG controversies.

Publisher

SAGE Publications

Subject

Business and International Management

Link

http://journals.sagepub.com/doi/pdf/10.1177/09721509231151490

Reference83 articles.

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