Does company size change everything? an analysis of the relationship between ESG and performanceo
DOI:
https://doi.org/10.16930/2237-766220253657Keywords:
ESG, Corporate Performance, Company Size, OECD, Quantile RegressionAbstract
This article examines the moderating role of company size in the relationship between the disclosure of environmental, social, and governance (ESG) practices and corporate performance, focusing on firms located in member countries of the Organisation for Economic Co-operation and Development (OECD). The research is classified as descriptive, documentary, and quantitative, covering the period from 2019 to 2023. The initial sample of 26,017 companies was refined to 5,552 after excluding financial institutions and records with incomplete data. For the empirical analysis, quantile regression models were applied at τ = 0.05, τ = 0.50. and τ = 0.95, allowing the capture of heterogeneous effects of ESG performance. The results reveal that smaller companies face significant obstacles in implementing ESG practices, particularly due to financial and operational constraints. In contrast, larger companies demonstrate greater capacity to internalize the benefits of these practices, which is reflected in improved corporate performance. The study contributes to the ongoing debate by showing that the impact of ESG initiatives is not uniform, varying according to the pillar considered and the size of the organization. These findings reinforce the importance of public policies and business strategies that take into account the structural specificities of companies in order to promote corporate sustainability more equitably.
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