Exploring the Impact of Environmental, Social, and Governance (ESG) Performance on Firm Efficiency: The Mediating Role of Environmental R&D Investment in BRICS Economies

IF 8.3 2区管理学 Q1 BUSINESS

Corporate Social Responsibility and Environmental Management Pub Date : 2025-03-03 DOI:10.1002/csr.3165

Umar Farooq, Jakkrit Thavorn

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Abstract

In emerging economies, businesses face mounting pressure to enhance their environmental, social, and governance (ESG) practices while boosting operational efficiency. This study investigates the mediating role of environmental R&D investment (END) in the relationship between ESG performance and firm efficiency. Using the fixed effects and system GMM approaches, the analysis covers data from BRICS firms between 2010 and 2022. To ensure robustness, panel quantile regression (PQR) is employed to validate results across various quantiles of firm efficiency distribution. The findings indicate that ESG performance positively influences firm efficiency, with END acting as a crucial mediator in this relationship. Specifically, firms with higher ESG scores are more inclined to invest in END, which subsequently drives improvements in efficiency through innovations in sustainable practices and technologies. The study suggests that policymakers should implement financial mechanisms, incentives, and regulations to foster investments in environmental R&D, thereby supporting ESG practices. This research adds to the existing body of literature by emphasizing the unique function of environmental R&D spending as a mediator between ESG performance and enterprise efficiency.

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探讨环境、社会和治理（ESG）绩效对企业效率的影响：金砖国家环境研发投资的中介作用

在新兴经济体，企业面临越来越大的压力，需要在提高运营效率的同时加强环境、社会和治理（ESG）实践。本研究探讨环境研发投资（END）在ESG绩效与企业效率关系中的中介作用。利用固定效应和系统GMM方法，该分析涵盖了金砖国家企业2010年至2022年的数据。为了确保稳健性，采用面板分位数回归（PQR）来验证企业效率分布的各个分位数的结果。研究结果表明，ESG绩效正向影响企业效率，而END在这一关系中起着重要的中介作用。具体而言，ESG得分较高的公司更倾向于投资于END，从而通过可持续实践和技术的创新推动效率的提高。研究建议，决策者应实施财政机制、激励措施和法规，以促进对环境研发的投资，从而支持ESG实践。本研究补充了现有文献，强调了环境研发支出作为ESG绩效与企业效率之间中介的独特功能。

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来源期刊

Corporate Social Responsibility and Environmental Management Multiple-

CiteScore

17.20

自引率

16.30%

发文量

189

期刊介绍： Corporate Social Responsibility and Environmental Management is a journal that publishes both theoretical and practical contributions related to the social and environmental responsibilities of businesses in the context of sustainable development. It covers a wide range of topics, including tools and practices associated with these responsibilities, case studies, and cross-country surveys of best practices. The journal aims to help organizations improve their performance and accountability in these areas. The main focus of the journal is on research and practical advice for the development and assessment of social responsibility and environmental tools. It also features practical case studies and evaluates the strengths and weaknesses of different approaches to sustainability. The journal encourages the discussion and debate of sustainability issues and closely monitors the demands of various stakeholder groups. Corporate Social Responsibility and Environmental Management is a refereed journal, meaning that all contributions undergo a rigorous review process. It seeks high-quality contributions that appeal to a diverse audience from various disciplines.