Understanding the effects of Environment, Social, and Governance conduct on financial performance: Arguments for a process and integrated modelling approach

• DOI: 10.1016/j.stae.2022.100004
• Publication Date: 2022-02-18T23:04:54Z
• Authors: Michael T. Lee; Ikseon Suh
• Keywords: Greenwashing; Causality

To date, an overwhelming number of research findings on Environment, Social, and Governance (ESG) conduct financial performance remains inconclusive. Furthermore, has not identified nor explained the "underlying mechanisms" behind this relationship. encourage future research, we discuss mechanisms by identifying first-order, mediating, moderating variables. We synthesize recent studies for emerging themes implications; argue a process integrated approach modelling causality between ESG variables; suggest methods to analyze models. also advocate researchers explore idea that balancing corporate among E, S, G components may provide revelations about performance. how incorporating "greenwashing" in model explain link, or more than likely lack it.