• The Journal of Society for e-Business Studies
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• v.25 no.4
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• pp.155-168
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• 2020

Although many studies have been conducted on the impact of increasing social awareness of corporate social responsibility activities on financial and non-financial performances, the number of studies conducted by financial companies is relatively small compared to those conducted by non-financial companies such as manufacturing and service industries. Accordingly, this study explores the impact of corporate social responsibility activities on the Earnings Persistence of financial companies through a regression analysis that utilizes the conversion score of an ESG rating of a Korean listed company provided by the Korea Corporate Governance Service (KCGS) as a variable for the company's social responsibility activities. Through this analysis, the study found that, among the ESG scores that are variables of social responsibility activities, the ESG governance score was significant in the direction of (+) for the Earnings Persistence. In addition, the same study conducted by classifying the entire sample into six sub-industries shows that the ESG governance score in the banking industry was more significant compared to when the regression analysis was conducted on the entirety of the samples. Therefore, this study concludes that the soundness and reliability of corporate governance have a positive effect on Corporate Earnings Persistence.

• Journal of Digital Convergence
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• v.22 no.4
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• pp.19-25
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• 2024

This study investigates the impact of corporate ESG activities on firm value, focusing on the moderating role of ESG reputation. We distinguish ESG reputation from ESG performance and propose that it influences how information users interpret ESG information. Some users view ESG information positively as a long-term investment indicator, while others dismiss it as greenwashing. We argue that ESG reputation moderates the acceptance of ESG performance information, leading to either more receptive or critical interpretations. Using web crawling techniques to collect news reports as a measure of ESG reputation, we conduct a comprehensive assessment of public perception and media coverage of companies' ESG efforts. This research contributes to a more nuanced understanding of the complex dynamics between ESG activities, corporate reputation, and firm value, offering insights into how ESG reputation shapes the relationship between ESG performance and firm value.

• The Journal of the Convergence on Culture Technology
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• v.9 no.6
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• pp.715-720
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• 2023

This study aims to select ESG items from a consumer perspective and examine the influence of these factors on corporate image and corporate reputation. ESG-related research tends to be conducted from a corporate or investment perspective. However, based on their evaluation of ESG activities, consumers form corporate image and corporate reputation. Accordingly, the E, S, and G evaluation items were applied from the consumer's perspective to analyze the impact of each item. As a result of the study, the impact on corporate image was found to be in the order of transparent management, support for small and medium-sized businesses, and response to climate change. The results of corporate reputation analysis showed transparent management, response to climate change, and support for small businesses. From the consumer's perspective, activities related to a company's response to climate change are considered a corporate obligation, and demands for coexistence and transparent corporate management of small and medium-sized businesses are growing. The significance of this study is that ESG requires environmental management, symbiotic management, and transparent management from a consumer point of view, suggesting that transparent corporate management is the most important factor. In addition, it suggests that communication with consumers of companies requires communication not only in the environmental area, but also in the social and governance areas.

• East Asian Economic Review
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• v.25 no.2
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• pp.125-150
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• 2021

The paper investigates investor sentiment's role in boosting Japanese companies to enhance their environmental, social, and corporate governance (ESG) performance. Using ESG scores of 367 firms between 2005 and 2019 from the ASSET4 database, we find that negative sentiment in the previous year, both firm and market level, can be a stimulation for the company's commitments to its ESG activities next year. Notably, the moderating effect of the business sector and economic cycle on the sentiment-ESG inference are detected in our study differentiating between corporate and market sentiment, which have never been reported before. In detail, we discover that the impact of firm-specific sentiment is less pronounced for high-sensitive ESG firms. On the other hand, the driving force of market sentiment on corporate social behaviors weakens when economic recessions happen. Our results are robust after controlling for potential endogeneity issues and using alternative proxies for market sentiment.

• Industry Promotion Research
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• v.9 no.2
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• pp.23-28
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• 2024

The study investigated the impact of ESG management activities on the non-financial performance of organizations, focusing on small and medium-sized manufacturing companies. Using data from 78 survey responses, the following results were summarized. Firstly, ESG management activities positively influenced internal customer satisfaction. The correlation coefficient was .679, indicating a moderately strong correlation, and the coefficient of determination (R²) was .461, explaining 46.1% of the variance. Additionally, with a beta value of .679, a t-value of 8.058, and a p-value of .000, ESG management activities had a statistically significant impact on internal customer satisfaction. Secondly, ESG management activities also had a positive impact on corporate trust. The correlation coefficient was .695, indicating a moderately strong correlation, and the coefficient of determination (R²) was .483, explaining 48.3% of the variance. The beta value was .695, the t-value was 8.429, and the significance probability was .000, indicating a significant influence on corporate trust.The study aimed to shed light on the relationship between ESG management activities of small and medium-sized enterprises and their non-financial performance. These results suggest that companies can enhance internal customer satisfaction and corporate trust through fulfilling social responsibilities and practicing sustainable management.

• Journal of Korea Trade
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• v.27 no.1
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• pp.1-18
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• 2023

Purpose - Using a sample of Korean multinational corporations, we examine whether the relationship between tax risk and the implied cost of capital discriminates between the environmental, social, and corporate governance (ESG) of highly rated firms. Design/methodology - Firms with high tax risks have an increased uncertainty of future cash flows. Therefore, as the volatility of future cash flow increases, information asymmetry and the required return increases. Highly rated ESG firms can reduce information asymmetry, thereby weakening the positive relationship between tax risk and cost of capital. We employ the standard deviation of the cash effective tax rate as proxy of tax risk. We utilize the ESG rating data of the Korea Corporate Governance Service (KCGS). We use a PEG model, MPEG model, and GM model to measure the implied cost of capital. Findings - We find a positive association between the implied cost of capital and tax risk. The positive relationship between tax risk and the implied cost of capital weakens in highly rated ESG firms. Highly rated ESG firms prefer a stable tax position to invest after-tax cash flows into sustainable management. Therefore, the negative effects of tax risk on cost of capital can be reduced. Originality/value - This study provides empirical evidence that ESG activities can mitigate the negative impact of tax risk on the cost of capital for Korean multinational corporations. In a business environment where ESG activities are more important, the empirical results that ESG activities can reduce the corporate risk of Korean FDI companies are expected to provide implications for the ESG activities of multinational corporations.

• The Journal of Asian Finance, Economics and Business
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• v.6 no.1
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• pp.21-31
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• 2019

This paper examines how corporate social responsibility is related to the degree of asymmetric information in the Korean financial market. Recent theory argues that there is a negative relationship between a firm's corporate social responsibility and its information asymmetry. To test this hypothesis, we use the environment, social and governance (ESG) score, published by the Korean Corporate Governance Service, to proxy a firm's management practices toward socially responsible activities. In the entire sample of the Korean firms, we find contrasting results; the ESG score shows negative relationships with the price impact measure but statistically insignificant relationships with the dispersion of analyst forecasts. However, the ESG score shows negative relationships with both measures when we exclude chaebol affiliates from the sample. These findings are robust when we examine environmental, social and corporate governance scores separately. This set of results argues for the extant theory, expecting a negative relationship between a firm's engagement in corporate social responsibility and asymmetric information. It further argues for the importance of firm characteristics in determining the influence of socially responsible activities.

• New & Renewable Energy
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• v.18 no.2
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• pp.60-72
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• 2022

The environmental, social, and governance (ESG) score is gaining recognition as important nonfinancial investment criteria. With climate change emerging as a global issue, energy companies must pay attention to the ESG impact on corporate performance. In this study, the ESG impact on the performance of energy companies was analyzed based on 23 companies selected from the S&P 500. The panel corrected standard error methodology was used. The Refinitiv ESG score was the independent variable, and financial performance metrics, such as Tobin's Q, return on assets, and return on equity, were the dependent variables. It was found that the ESG score is positively associated with long-term corporate value but not with short-term profitability in the electricity utility industry. Among the subcategories of ESG, the environmental and social scores also showed positive correlations with long-term corporate value. A direct incentive policy is recommended that can offset expenses for ESG activities to reduce carbon emission in the energy sector.

• Korea Trade Review
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• v.48 no.1
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• pp.331-355
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• 2023

As competition between companies intensifies in the global management environment, ESG management is emerging as a tool for companies to have competitive advantages, and it is becoming increasingly important for companies to form strategic partnerships using SCM. Through the investigation of the previous research, the main factors such as ESG management, SCM partnership, corporate image, performance and so on were analyzed. As a result, the stronger ESG management factors such as the environment and society are, the higher the corporate image. Second, ESG management, such as the environment and society, has a significant impact on corporate performance. Third, ESG management activities such as environment and society have enhanced SCM partnerships. Fourth, it was confirmed that the stronger the SCM partnership, the better the corporate image. Fifth, the improvement of the corporate image of non-financial performance will have a more significant impact on corporate performance. In terms of academic and practical implications, it leads to important factors to be considered in the introduction of ESG management by companies, and empirically explores the relationship between each factor. The ESG management of Korean start-ups needs to be promoted according to environmental and social factors, and the ESG management needs to be implemented from a long-term perspective.

• Journal of Korea Port Economic Association
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• v.39 no.3
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• pp.75-90
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• 2023

This study aims to examine the impact of ESG management on management performance based on the type of organizational culture in Korean shipping and logistics companies. An online survey was conducted among shipping lines (regular and irregular) and general logistics companies with sales of more than 500 billion won that are implementing ESG management. A total of 183 copies were returned, and PLS structural equation analysis was conducted using the Smart PLS 4.0 program. The results of the study are as follows First. Governance management activities have a significant effect on business performance, social management activities have a significant effect on innovation culture, governance management activities have a significant effect on innovation culture, environmental management activities have a significant effect on hierarchical culture, and governance management activities have a significant effect on hierarchical culture. Contributions of this study First, this study analyzes the impact of ESG management activities on management performance of Korean shipping and logistics companies. Second, this study collected data through a questionnaire survey. The data were analyzed to determine the effect of ESG management activities on management performance. The data was analyzed to determine the level of ESG-related activities and business performance of companies and used to analyze the correlation between ESG management activities and business performance. Third, the results of the study suggest that companies can recognize that ESG management can help them improve their business performance. This can help companies build sustainable management strategies and further strengthen their management orientation to consider ESG factors.