Abstract
We find that competition hurts corporate incentives to fulfill environmental, social, and governance (ESG) goals. Firms facing more competitive pressure have worse ESG scores, in particular when the firms have short-term-oriented shareholders. However, firms located in areas that are more concerned about climate change appear more willing to sacrifice profits for better ESG performance.
Original language | English |
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Specialist publication | The ProMarket |
Publication status | Published - 13 Nov 2023 |
Keywords
- competition
- ESG
- product market threats
- sustainability