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

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.

authors

• Mahajan, Arvind

published proceedings

• GLOBAL BUSINESS REVIEW

author list (cited authors)

• Mendiratta, A., Singh, S., Yadav, S. S., & Mahajan, A.

complete list of authors

• Mendiratta, Anita||Singh, Shveta||Yadav, Surendra Singh||Mahajan, Arvind

publication date

• 2023

publisher

• SAGE Publications  Publisher

published in

• Global Business Review  Journal

keywords

• Csr Mandate
• Esg Controversies
• Firm Performance
• Government Effectiveness
• Moderation

Digital Object Identifier (DOI)

• 10.1177/09721509231151490

start page

• 097215092311514

end page

• 097215092311514

URL

• http://dx.doi.org/10.1177/09721509231151490