Do high ESG moderate companies perform better in the pandemic period?

HsinPing Tsai

Authors

HsinPing Tsai National Yunlin University of Science and Technology

Keywords:

ESG, corporate capabilities, corporate efficiency, event study method, cumulative abnormal return (CAR)

Abstract

ESG has gradually become an issue that companies cannot ignore. This study aimed to examine how high ESG companies achieve better performance and risk aversion during the crisis and answer whether ESG positively impacts corporate performance and risk aversion. Six hypotheses were developed and tested with the help of OLS on a sample of 719 listed companies in Taiwan's electronics industry.

The results show that ESG enhances firm performance. In addition, this study suggests that the interference effect of ESG on performance is due to the difference between ESG and corporate capabilities and that the interaction between ESG and different corporate capabilities may have different positive or negative enhancing effects on corporate performance.

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