Distinctive impacts of ESG pillars on corporate financial performance: A random forest analysis of Korean listed firms

IF 7.4 2区经济学 Q1 BUSINESS, FINANCE

Finance Research Letters Pub Date : 2024-10-31 DOI:10.1016/j.frl.2024.106395

Yangsoo Jin

引用次数: 0

Abstract

This study investigates the distinct effects of the environmental, social, and governance (ESG) pillars on corporate financial performance (CFP) measured by ROE and ROA. Using a random forest regression on a sample of Korean-listed firms, we address the positive correlations among these pillars and explore the nonlinear relationships between CFP and individual pillars without pre-specified functional forms. The findings indicate that both environmental and governance performances positively affect CFP, with environmental performance having a more substantial impact but diminishing returns at higher levels. Social performance negatively affects CFP. The environmental pillar emerges as the most reliable predictor of CFP.

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环境、社会和公司治理支柱对企业财务业绩的独特影响：韩国上市公司的随机森林分析

本研究探讨了环境、社会和治理（ESG）支柱对以 ROE 和 ROA 衡量的公司财务绩效（CFP）的不同影响。通过对韩国上市公司样本进行随机森林回归，我们解决了这些支柱之间的正相关关系，并在没有预先指定函数形式的情况下探索了 CFP 与各个支柱之间的非线性关系。研究结果表明，环境绩效和治理绩效都会对 CFP 产生积极影响，其中环境绩效的影响更大，但在更高的水平上，回报会逐渐减少。社会绩效对 CFP 有负面影响。环境支柱是预测 CFP 的最可靠因素。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Finance Research Letters BUSINESS, FINANCE-

CiteScore

11.10

自引率

14.40%

发文量

863

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