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Do ESG Practices Promote Financial Performance? Comparison of English, Chinese, and Korean Papers Through Bibliometric and Meta-Analysis

Author

Listed:
  • Haoyue Bai

    (Department of Business Administration, Jeju National University, Jeju 63243, Republic of Korea)

  • Junghee Kim

    (Department of Business Administration, Jeju National University, Jeju 63243, Republic of Korea)

Abstract

Companies engaged in ESG practices to enhance financial performance and demonstrate a commitment to sustainable development. However, the relationship between ESG and financial performance remained unclear, as prior studies were replete with contradictory paradoxes. This study aimed to comprehensively analyze the evolution of ESG practices and their impact on financial performance by comparing English, Chinese, and Korean papers. This study employed a mixed-methods approach and conducted a bibliometric analysis on 2659 ESG-related papers to unveil temporal trends and conduct a meta-analysis. Stratifying by language, linguistic and cultural nuances influencing the relationship were identified. The bibliometric analysis revealed a significant turning point in ESG research around 2019, marked by a surge in publications across languages. Keyword co-occurrence networks highlighted distinct focal points, with financial performance appearing in all the research themes. The meta-analysis indicated a low overall positive correlation between ESG and financial performance. However, Chinese and Korean papers demonstrated a moderate correlation, while English papers showed no significant correlation. This study informed scholarly, managerial, and policy discourse on sustainable business practices, contributing to the evolving ESG landscape.

Suggested Citation

  • Haoyue Bai & Junghee Kim, 2024. "Do ESG Practices Promote Financial Performance? Comparison of English, Chinese, and Korean Papers Through Bibliometric and Meta-Analysis," Sustainability, MDPI, vol. 16(22), pages 1-22, November.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:22:p:9810-:d:1518123
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    References listed on IDEAS

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    2. Guangyou Zhou & Lian Liu & Sumei Luo, 2022. "Sustainable development, ESG performance and company market value: Mediating effect of financial performance," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3371-3387, November.
    3. Shukang Zhou & Md. Harun Ur Rashid & Shah Asadullah Mohd. Zobair & Farid Ahammad Sobhani & Abu Bakkar Siddik, 2023. "Does ESG Impact Firms’ Sustainability Performance? The Mediating Effect of Innovation Performance," Sustainability, MDPI, vol. 15(6), pages 1-21, March.
    4. Sandra A. Waddock & Samuel B. Graves, 1997. "The Corporate Social Performance–Financial Performance Link," Strategic Management Journal, Wiley Blackwell, vol. 18(4), pages 303-319, April.
    5. Lihua Zeng & Hao Li & Liyu Lin & Dora Juan Juan Hu & Hui Liu, 2024. "ESG Standards in China: Bibliometric Analysis, Development Status Research, and Future Research Directions," Sustainability, MDPI, vol. 16(16), pages 1-24, August.
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    Cited by:

    1. Petcu Alma Maria, 2025. "Does ESG Assumption Improve Financial Performance?," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 19(1), pages 3267-3278.

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