Mapping Environmental, Social, and Governance Controversies and Corporate Financial Performance: Insights From Bibliometric and Content Analyses

Abstract

This study explores the relationship between ESG controversies and corporate financial performance, focusing on key trends, influential contributions, and dominant theoretical frameworks and research methods in this area. It aims to provide a comprehensive overview of the evolving research landscape and its associated implications. It conducts a systematic literature review utilizing PRISMA protocols along with bibliometric and content analyses. Data were extracted from the Web of Science (WoS) and Scopus databases, resulting in a final selection of 37 high-quality articles published between 2004 and 2024. The analysis identified stakeholder, legitimacy, and agency theories as the most frequently used theoretical frameworks. Results reveal a significant increase in publications since 2022, with ESG controversies affecting corporate financial performance through financial risks and reputational challenges. Key gaps include limited sector-specific research, short-term financial measures, the dominance of quantitative methodologies, and the incorporation of emerging technologies. The study is limited to the WoS and Scopus databases, focusing on peer-reviewed articles in English. It highlights opportunities for future research in emerging markets, sector-specific studies, and integrative qualitative and mixed-method approaches. The findings emphasize the importance of board independence and corporate social responsibility initiatives in addressing ESG controversies. Companies should align their corporate governance structures with ESG strategies to improve transparency, stakeholder trust, and financial resilience. This study offers a comprehensive bibliometric analysis of ESG controversies and corporate financial performance, providing valuable insights for academics, practitioners, and policymakers to explore this research area.