This study examines the impact of corporate controversies on financial performance, including through the moderating role of ESG practices, regarding the contextual specificities present in insider and outsider legal systems, namely civil law and common law. Utilising the Refinitiv database, a sample of energy sector companies operating in the two mentioned legal contexts was selected. The study seeks to contribute to the literature on the relevant themes of sustainability and corporate governance, particularly regarding shareholder theories, highlighting how, in some cases, the context can accentuate the mitigating effect of ESG practices in the controversy/performance relationship. Regarding managerial implications, this study emphasizes, on the one hand, the impact of controversies on the financial performance of companies and, on the other, the importance of the regulatory context and, therefore, of institutional regulation that, in some cases, could act as a facilitator of ESG practices, encouraging the emergence of imitation phenomena among companies in the adoption of healthy and sustainable behaviours.
Esg controversy and Financial Performance. An explorative study on energy sector
Basile G.;Mazzitelli A.;
2024-01-01
Abstract
This study examines the impact of corporate controversies on financial performance, including through the moderating role of ESG practices, regarding the contextual specificities present in insider and outsider legal systems, namely civil law and common law. Utilising the Refinitiv database, a sample of energy sector companies operating in the two mentioned legal contexts was selected. The study seeks to contribute to the literature on the relevant themes of sustainability and corporate governance, particularly regarding shareholder theories, highlighting how, in some cases, the context can accentuate the mitigating effect of ESG practices in the controversy/performance relationship. Regarding managerial implications, this study emphasizes, on the one hand, the impact of controversies on the financial performance of companies and, on the other, the importance of the regulatory context and, therefore, of institutional regulation that, in some cases, could act as a facilitator of ESG practices, encouraging the emergence of imitation phenomena among companies in the adoption of healthy and sustainable behaviours.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
