• Journal of the Korea Fashion and Costume Design Association
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• v.26 no.1
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• pp.99-109
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• 2024

This study focused on analyzing the difference in the impact of non-financial performance, specifically ESG (Environmental, Social, and Governance) activity grade level, on management performance and corporate value among the 25 fashion companies listed on the Korea Exchange that completed their ESG evaluation in 2022. The companies were categorized into three levels based on their ESG evaluations: ESG Integrated Grade (ESG-T), ESG-E (Environmental), ESG-S (Social), and ESG-G (Governance). The study then empirically analyzed how these levels affected management performance and corporate value. The empirical analysis revealed significant differences in the impact on management performance and corporate value depending on the ESG activity grade level. Companies with higher ESG grades exhibited better management performance and higher corporate values across all ESG sub-variables (ESG-T, ESG-E, ESG-S, ESG-G) compared to those with lower grades. This finding demonstrates the influence of ESG activity grade levels on improving management performance and enhancing corporate value in fashion companies. The results of this research provide meaningful insights into the direction of sustainable management through ESG activities in fashion companies.

• The Korean Journal of Franchise Management
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• v.14 no.2
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• pp.19-30
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• 2023

Purpose: Corporate management is under pressure to contribute to social values beyond profit-seeking, and interest in ESG (Environment, Social, Governance) is increasing worldwide. In the recent global climate change crisis and the COVID-19 pandemic, the importance of non-financial values such as ESG is increasing. Therefore, the purpose of this study is to prepare a strategy for future ESG management activities by analyzing the impact of it on corporate performance by food companies. Research design, data and methodology: ESG-related research trends, ESG activities, and corporate performance were analyzed. After that, a regression analysis was conducted to identify the relationship between ESG evaluation grade and corporate performance. Result: ESG management activities measured by ESG scores did not significantly affect the return on assets, one of the variables of corporate performance. However, as a result of setting the return on equity as a dependent variable, ESG management activities have a nonlinear relationship with corporate performance, and ESG management activities have a positive effect on corporate performance when investment in ESG management activities is reasonable. Conclusions: These results show that food companies should engage in an appropriate level of ESG management activities to improve corporate performance.

• The Journal of the Convergence on Culture Technology
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• v.10 no.6
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• pp.429-436
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• 2024

This study examines the impact of ESG ratings on corporate financial performance among Korean firma, employing both linear and nonlinear analyses to asess the mediating effect of R&D investments, and the moderating effect of corporate visibility. The key findings are as follows: First, higher ESG ratings were found to significantly increase corporate financial performance; however, beyond a certain threshold, financial performance begins to decline. Second, as ESG ratings increased, R&D investments also significantly increased, suggesting that ESG activities promote corporate innovation and R&D efforts. Third, R&D investments were shown to positively mediate the relationship between ESG and corporate financial performance. Lastly, corporate visibility was found to positively moderate the impact of ESG on financial performance. The inverse U-shaped relationship between ESG ratings and financial performance suggests that excessive ESG activities may incur additional costs. Therefore, firms should identify an optimal level of ESG engagement to sustain financially viable ESG practices.

• 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.

• Industry Promotion Research
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• v.9 no.2
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• pp.197-205
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• 2024

This study examines the impact of corporate ESG performance on debt default risk using a sample of Chinese A-share listed.The I mpact of ESG Performance on Debt Default Risk of Heavy Polluter Firms from 2012 to 2022. The findings show that good ESG performance can effectively reduce firms' debt default risk. Further analysis shows that firms' ESG performance reduces debt default risk by mitigating the impact of financing constraints. This study explores the influencing factors of debt default risk from the perspective of ESG performance, and also enriches the research on the economic impact of corporate ESG performance, providing empirical evidence for the prevention of corporate debt default risk.

• Journal of Korea Society of Industrial Information Systems
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• v.28 no.6
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• pp.173-187
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• 2023

This study aims to determine whether ESG performance positively affects foreign ownership for listed firms that publish sustainability reports. Furthermore, we test whether the disclosure of environmental information in the sustainability report in accordance with the TCFD recommendations moderates the relationship between ESG performance and foreign ownership. The results of the empirical analysis are as follows. First, there is a positive correlation between ESG performance in a given year and foreign ownership in the following year, i.e., the higher a firm's ESG performance, the higher its foreign ownership. Second, the presence of environmental disclosure in accordance with the TCFD recommendations positively moderates the relationship between ESG performance and foreign ownership, i.e., environmental disclosure in accordance with the TCFD recommendations strengthens the positive relationship between ESG performance and foreign ownership. In conclusion, this study shows that foreign investors invest more in companies with better ESG performance, and the effect is stronger for companies that disclose environmental information in accordance with TCFD recommendations.

• Journal of Wellbeing Management and Applied Psychology
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• v.7 no.4
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• pp.75-89
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• 2024

The purpose of this study was to investigate the impact of coaching leadership on ESG management performance through employee innovation behavior in the context of SMEs. Amid the lack of ESG-related research on SMEs, this study is significant in that it empirically verified that coaching leadership can contribute to the improvement of ESG performance of SMEs by inducing innovative behavior of employees. For the study, a survey was conducted on 244 employees of domestic SMEs. As a result of the study, it was found that coaching leadership partially had a positive (+) effect on ESG performance. Specifically, direction suggestion and competency development had a positive effect on the environment, social responsibility, and governance structure of ESG performance, but the relationship with performance evaluation did not have a significant effect. In addition, the direction of coaching leadership and competency development had a positive effect on innovation behavior, but performance evaluation was not significant. Innovative behavior had a significant positive (+) effect on all aspects of ESG performance (environment, social responsibility, and governance), and showed a significant mediating effect in the relationship between coaching leadership and ESG performance. This suggests that innovative behavior plays an important role in mediating the relationship between the sub-factors of coaching leadership and ESG performance. The theoretical significance of this study is to support the innovation behavior of members through coaching leadership in the SME field and to identify a path to increase ESG performance as a result. In addition, most previous studies on the relationship between ESG and innovation behavior have shown that innovation behavior is promoted by the influence of ESG, but this study confirmed that innovation behavior of SME members is an important factor in improving ESG performance. These results provided practical and policy implications for promoting ESG performance by leading the use of coaching leadership and innovation behavior in the SME field.

• Korea Journal of Hospital Management
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• v.28 no.2
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• pp.66-78
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• 2023

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.

• International Journal of Internet, Broadcasting and Communication
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• v.15 no.3
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• pp.185-190
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• 2023

Due to the growing importance of ESG management, various studies have been conducted to explore the relationship between ESG performance and corporate value. The purpose of this study is to investigate how a company's ESG performance impacts its corporate value. The research findings indicate that there is difficulty in explaining the relationship between ESG performance of Korean IT companies and firm value in a straightforward manner. However, the results demonstrate that companies with higher profitability, higher foreign ownership, and higher R&D expenditure tend to have a positive impact of ESG ratings on corporate value. Based on these results, we can infer that Korean IT companies can enhance their corporate value by increasing R&D investments to develop innovative products that improve profitability. Additionally, attracting higher foreign investments can also positively influence ESG performance and subsequently increase corporate value. Acknowledging these factors can help companies realize the significance of ESG performance in elevating their overall corporate value.

• Journal of East Asia Management
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• v.5 no.2
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• pp.65-82
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• 2024

This study empirically examines the impact of corporate ESG performance on executive compensation, highlighting the importance of integrating sustainable management practices into compensation structures. Using data from publicly listed companies in Korea, the research specifically investigates how ESG performance influences both fixed and variable compensation of executives. The findings reveal that ESG performance has a significant positive impact on both fixed and variable compensation, suggesting that companies increasingly recognize ESG performance as a critical metric in evaluating executive achievements. The results also indicate that firms are not only considering financial performance but also non-financial factors such as ESG when determining executive compensation. This reflects a broader trend towards sustainable management practices that align with long-term corporate growth and value creation. This research contributes to the understanding of how ESG performance influences executive compensation and highlights the need for companies to adopt compensation frameworks that promote sustainable management. Future research should focus on examining the differences in the impact of ESG performance on executive compensation across various industries and firm sizes. Additionally, exploring the long-term relationship between ESG performance and overall corporate success will be essential in understanding how sustainable practices can enhance a company's long-term competitiveness and growth.