Korea Journal of Hospital Management (한국병원경영학회지)

Korean Society of Hospital Management (한국병원경영학회)
권호 표지

The relationship among ESG management activities, financial performance and technological innovation in healthcare companies

헬스케어 기업의 ESG경영활동에 따른 재무성과 및 기술혁신 관계

  • Peng Wang (Dept. of Business Administration, Hanyang University) ;
  • Chang Won Lee (School of Business, Hanyang University)
  • 왕봉 (한양대학교 대학원 경영학과) ;
  • 이창원 (한양대학교 경영대학)
  • Received : 2023.02.01
  • Accepted : 2023.06.28
  • Published : 2023.06.30
Download PDF
⟨ Previous Next ⟩

Abstract

Purposes: This study explored the difference analysis of financial performance and technological innovation according to the ESG management activities of healthcare companies based on the time before and after the mandatory ESG management reporting of listed Chinese healthcare companies in China. Methodology: This study collected ESG management activities, corporate financial performance, and technological innovation data of Chinese listed healthcare companies by using Bloomberg Database and China-listed company reports to collect data for analyzing differences between groups through T-test. Findings: ESG activities in the healthcare industry have a certain impact on corporate financial performance, but have no impact on corporate technological innovation. Like the world trend, the ESG activities and financial results of China's healthcare industry have shown a positive development direction in recent years, and ESG scores are rising. Practical Implication: Since 2018, ESG activities in China's healthcare industry have flourished, and ESG activities and financial performance have developed in a positive direction.

Keywords

References

  1. Piechocka-Kaluzna, A., Tluczak, A., & Lopatka, P. The impact of CSR/ESG reporting on the cost of capital: An example of US healthcare entities. European Research Studies Journal 2021; 24(S3). 679-690. https://doi.org/10.35808/ersj/2502
  2. Kim, H. & Lee, C. W. A study on effect of customer's perception on purchase intention in sustainable supply chain management. International Business Education Review 2018; 15(1), 137-158.
  3. Kim, Y. 'Fire in the foot'ESG information disclosure… Compulsory countdown for domestic listed companies. Korea Economics Magazine. 2021 Mar 31.
  4. Krueger, P., Sautner, Z., Tang, D. Y., & Zhong, R. The effects of mandatory ESG disclosure around the world. European Corporate Governance Institute-Finance Working Paper 2021; (754), 21-44.
  5. Ge, G., Xiao, X., Li, Z., & Dai, Q. Does ESG performance promote high-quality development of enterprises in China? The mediating role of innovation input. Sustainability 2022; 14(7), 3843.
  6. Kang, W. & Jung, M. Effect of ESG activities and Firm's financial characteristics. Korean Journal of Financial Studies 2020; 49(5), 681-707. https://doi.org/10.26845/KJFS.2020.10.49.5.681
  7. Broadstock, D. C., Chan, K., Cheng, L. T., & Wang, X. The role of ESG performance during times of financial crisis: Evidence from COVID-19 in China. Finance Research Letters 2021; 38, 101716.
  8. Jung, K.-S. Global competition in domestic medical institutions ESG management is essential. Medical Newspaper. 2023 Jan 31.
  9. Korea Health Industry Development Institute. Research on ESG awareness and management status of medical institutions 2022.
  10. Piechocka-Kaluzna, A., Tluczak, A., & Lopatka, P. The impact of CSR/ESG reporting on the cost of capital: An example of US healthcare entities. European Research Studies Journal 2021; 24(3), 679-690. https://doi.org/10.35808/ersj/2502
  11. Rankins CSR Ratings. Biopharma ESG Rating Report 2022.
  12. Statistical bulletin on the development of health care in China 2021.
  13. McKinsey & Company. Consumers care about Sustainability-and back it up with their wallets. 2023 Feb 6.
  14. Essential Corporate Social Responsibility. MEDIA HYOSUNG. 2022 Oct 13.
  15. Jang, S. Kim, Y. H. Corporate ESG and long-run financial performance. Financial Management Research 2013; 30(1), 131-152.
  16. Uyar, A., Kilic, M., Koseoglu, M. A., Kuzey, C., & Karaman, A. S. The link among board characteristics, corporate social responsibility performance, and financial performance: Evidence from the hospitality and tourism industry. Tourism Management Perspectives 2020; 35, 100714.
  17. Kim, S., & Li, ;. Understanding the impact of ESG practices in corporate finance. Sustainability 2021; 13(7), 3746.
  18. Friede, G., Busch, T., & Bassen, A. ESG and financial performance: aggregated evidence from more than 2000 empirical studies. Journal of Sustainable Finance & Investment 2015; 5(4), 210-233. https://doi.org/10.1080/20430795.2015.1118917
  19. Alsayegh, M. F., Abdul Rahman, R., & Homayoun, S. Corporate economic, environmental, and social sustainability performance transformation through ESG disclosure. Sustainability 2020; 12(9), 3910.
  20. Kim, T.M., Kim, R. & Huh, J.-H. The influence of ESG management on financial performance: The mediation effect of customer satisfaction, Journal of CEO and Management Studies 2022; 25(2), 159-176.
  21. Cesarone, F., Martino, M. L., & Carleo, A. Does ESG impact really enhance portfolio profitability? Sustainability 2022; 14(4), 2050.
  22. CIO. The growing importance of the technology economy. Cavallo, M. 2016 Dec 21.
  23. Zhang, C., & Jin, S. What drives sustainable development of enterprises? focusing on ESG management and green technology innovation. Sustainability 2022; 14(18), 11695.
  24. Sherwood, M. W. & Pollard, J.L. The risk-adjusted return potential of integrating ESG strategies into emerging market equities, Journal of Sustainable Finance & Investment 2018. 8:1, 26-44. https://doi.org/10.1080/20430795.2017.1331118
  25. Velte, P. Sustainable management compensation and ESG performance-the German case. Problems and Perspectives in Management 2016; 14(4), 17-24. https://doi.org/10.21511/ppm.14(4).2016.02
  26. El Khoury, R., Nasrallah, N., & Alareeni, B. ESG and financial performance of banks in the MENAT region: concavity-convexity patterns. Journal of Sustainable Finance & Investment 2023; 13(1), 406-430. https://doi.org/10.1080/20430795.2021.1929807
  27. Manap, N. A., Shapiee, R. B., Tehrani, P. M., & Shariff, A. A. B. M. Protecting R&D inventions through intellectual property rights. Journal of Intellectual Property Rights 2016; 21, 110-116.
  28. Kim, G., & Bae, J. A novel approach to forecast promising technology through patent analysis. Technological Forecasting and Social Change 2017; 117, 228-237. https://doi.org/10.1016/j.techfore.2016.11.023
  29. Ernst, H. Patent information for strategic technology management. World patent information 2003; 25(3), 233-242. https://doi.org/10.1016/S0172-2190(03)00077-2
  30. Alareeni, B. A., & Hamdan, A. ESG impact on performance of US S&P 500-listed firms. Corporate Governance: The International Journal of Business in Society 2020; 20(7), 1409-1428. https://doi.org/10.1108/CG-06-2020-0258
  31. Berg, F., Koelbel, J. F., Pavlova, A., & Rigobon, R. ESG confusion and stock returns: Tackling the problem of noise. National Bureau of Economic Research 2022; No. w30562.
  32. Cornell, B. ESG preferences, risk and return. European Financial Management 2021; 27(1), 12-19. https://doi.org/10.1111/eufm.12295
  33. Chouaibi, S., Chouaibi, J., & Rossi, M. ESG and corporate financial performance: The mediating role of green innovation: UK common law versus Germany civil law. EuroMed Journal of Business 2021; 17(1), 46-71. https://doi.org/10.1108/EMJB-09-2020-0101
  34. Lee, C. W. Application of Metaverse Service to Healthcare Industry: A Strategic Perspective. International Journal of Environmental Research and Public Health 2022; 19(20), 13038.