Market Competition Hurts Firm’s ESG Performance

Vesa Pursiainen, Hanwen Sun, Yue Xiang

Research output: Contribution to specialist publicationArticle

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 languageEnglish
Specialist publicationThe ProMarket
Publication statusPublished - 13 Nov 2023

Keywords

  • competition
  • ESG
  • product market threats
  • sustainability

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