A moderação da corrupção na relação entre as controvérsias ESG e o desempenho financeiro das empresas

Abstract

The study aimed to identify the moderating effect of corruption on the relationship between Environmental, Social, and Governance (ESG) controversies and firms’ financial performance (measured by Tobin’s Q, ROA, and ROE), taking into account the macroeconomic context of countries (developed and emerging) and environmentally sensitive companies. The relationship was examined using an unbalanced panel data regression with the Ordinary Least Squares (OLS) method, based on a sample of 3,152 companies from 36 countries over the period from 2004 to 2022. The findings indicate that ESG controversies are detrimental to the efficiency of asset management and profit accumulation, particularly for environmentally sensitive companies in developed countries. Conversely, scenarios were identified in which ESG controversies enhanced the financial performance of firms, especially in emerging economies that are more susceptible to crises and market fluctuations. Moreover, corruption reduced the positive market-based financial performance associated with ESG controversies while accentuating their negative impact on accounting-based financial performance. As a theoretical contribution, these results deepen the understanding of how stakeholders may be adversely affected across different economic and sectoral contexts by testing the premises of Stakeholder Theory, thereby providing reasons for stakeholders to organize in order to reinforce governance structures and market discipline within their capital markets to mitigate the adverse effects of ESG controversies and corruption. In practical terms, the research suggests that ESG controversies are harmful to firms’ financial performance, and that their negative effects are exacerbated by corruption. From a social perspective, the study underscores the need for the adoption of best corporate practices to curb corruption and ESG controversies, thereby contributing to the creation of a more sustainable business environment. Furthermore, these findings may be particularly relevant to stakeholders with investments in companies involved in ESG controversies or associated with related risk projections, especially in contexts marked by social disruption such as corruption.