IDEAS home Printed from https://ideas.repec.org/a/ids/gbusec/v34y2026i3p373-394.html

The impact of ESG performance on firm value and profitability: moderating role of regulatory quality

Author

Listed:
  • Nguyen Thu Ha
  • Vu Thi Thu Huong

Abstract

This paper investigates the impact of ESG performance on firm value (FV) and profitability and explores the moderating effects of regulatory quality in shaping the nexus between ESG performance and both FV and profitability. The authors compile a panel dataset of 195 Japanese listed companies from 2007-2022. The hypotheses were examined via the generalised least squares method as an alternative among pooled ordinary least squares, the fixed effects model, and the random effects model after model validity and model issues were detected. The results indicate that: 1) ESG performance has a negative effect on FV and profitability; 2) regulatory quality positively moderates the effects of ESG performance on FV and profitability; 3) larger companies face hurdles in attaining market value, whereas SMEs encounter obstacles in regard to embracing and implementing ESG practices; 4) companies operating in environmentally sensitive sectors exhibit higher FV but face challenges in achieving profitability.

Suggested Citation

  • Nguyen Thu Ha & Vu Thi Thu Huong, 2026. "The impact of ESG performance on firm value and profitability: moderating role of regulatory quality," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 34(3), pages 373-394.
    • Handle: RePEc:ids:gbusec:v:34:y:2026:i:3:p:373-394
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=153017
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:gbusec:v:34:y:2026:i:3:p:373-394. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=168 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.