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Corporate ESG performance and competitive strategies from the perspective of financial markets: Strategic significance of firm size

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  • Sun, Ze
  • Cai, Cen
  • Tan, Haoyu
  • Ji, Heli
  • Tian, Grace (Li)

Abstract

This study provides a comprehensive analysis of how market competition influences corporate environmental, social, and governance (ESG) performance within financial markets. The findings suggest that heightened market competition compels companies to strengthen their ESG performance. Firm size serves as a positive moderating factor in this process, enabling larger firms to better capitalize on competitive pressures to enhance their ESG efforts and refine their strategic positioning in financial markets. Although environmental information uncertainty presents challenges to corporate ESG performance, firm size also plays a moderating role in mitigating these negative effects.

Suggested Citation

  • Sun, Ze & Cai, Cen & Tan, Haoyu & Ji, Heli & Tian, Grace (Li), 2025. "Corporate ESG performance and competitive strategies from the perspective of financial markets: Strategic significance of firm size," Finance Research Letters, Elsevier, vol. 77(C).
    • Handle: RePEc:eee:finlet:v:77:y:2025:i:c:s1544612325003423
    DOI: 10.1016/j.frl.2025.107080
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    References listed on IDEAS

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