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The concave–convex effects of environmental, social and governance on high‐tech firm value: Quantile regression approach

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  • Kun‐Shan Wu
  • Bao‐Guang Chang

Abstract

This study aims to investigate the nonlinear relationship between environmental, social and governance (ESG) and firm value (FV). The sample includes 38 Taiwan Stock Exchange listed high‐tech firms with ESG disclosure between 2005 and 2020. Quantile regression estimation results indicate there is a nonlinear concave–convex ESG‐FV relationship, which is also verified by the U‐test. Furthermore, there is a different relationship between the individual ESG pillars and FV. The nexus between the environmental and social pillars and FV are concave–convex, whereas the governance pillar has no significant effect on FV. The model in this research offers a valuable analytical framework for exploring sustainability reporting as a driver of performance in the high‐tech industry. Overall, we highlight Taiwan's high‐tech firms should ensure that both the costs and benefits of the ESG performance for maintaining sustainable development and stakeholder engagement.

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  • Kun‐Shan Wu & Bao‐Guang Chang, 2022. "The concave–convex effects of environmental, social and governance on high‐tech firm value: Quantile regression approach," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1527-1545, September.
    • Handle: RePEc:wly:corsem:v:29:y:2022:i:5:p:1527-1545
    DOI: 10.1002/csr.2289
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    1. Xiaodong Teng & Kun-Shan Wu & Lopin Kuo & Bao-Guang Chang, 2023. "Investigating the double-edged sword effect of environmental, social and governance practices on corporate risk-taking in the high-tech industry," Oeconomia Copernicana, Institute of Economic Research, vol. 14(2), pages 511-549, June.
    2. Han Long & Gen‐Fu Feng & Qiang Gong & Chun‐Ping Chang, 2023. "ESG performance and green innovation: An investigation based on quantile regression," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 5102-5118, November.
    3. Li, WeiWei & Padmanabhan, Prasad & Huang, Chia-Hsing, 2024. "ESG and debt structure: Is the nature of this relationship nonlinear?," International Review of Financial Analysis, Elsevier, vol. 91(C).

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