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How ESG engagement shapes firm life cycle progression: Evidence from U.S. data

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  • Hwang, Tang-Lin
  • Liu, Yu-Hong

Abstract

This study examines how ESG profiles influence future evolution of a firm's life cycle. Firms with ESG ratings are more likely to move into growth and mature stages than those without disclosures. The results are robust to endogeneity and various checks, offering empirical support for ESG's benefits to shareholders, stakeholders, investors, managers, and policymakers.

Suggested Citation

  • Hwang, Tang-Lin & Liu, Yu-Hong, 2025. "How ESG engagement shapes firm life cycle progression: Evidence from U.S. data," Finance Research Letters, Elsevier, vol. 83(C).
    • Handle: RePEc:eee:finlet:v:83:y:2025:i:c:s1544612325008487
    DOI: 10.1016/j.frl.2025.107589
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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