Global Business and Finance Review | 2026
Authors: Kim S.; Cheon J.; Lee K.
DOI: 10.17549/gbfr.2026.31.4.60
Journal: Global Business and Finance Review
Year: 2026
Publisher: People and Global Business Association
Document Type: Article
Open Access: All Open Access; Gold Open Access
Cited by: 0
Purpose: This study examines how corporate ESG performance influences both short-term financial performance and long-term firm value. It also investigates whether company size, industry type, and firm age moderate these relationships. Design/methodology/approach: ESG performance data were collected from 506 firms listed on the Korean Stock Exchange between 2020 and 2022. PLS-SEM and multi-group analysis (PLS-MGA) were conducted using Smart PLS 4.1. Six components of the KEJI Index-soundness, fairness, social contribution, consumer protection, environmental management, and employee satisfaction-served as proxies for ESG performance. Findings: Higher ESG performance was associated with improved long-term value and short-term financial performance, though not uniformly across firms. Multi-group analysis revealed that soundness positively affected firm value in all company types, while social contribution had a positive effect only in SMEs. Environmental management showed a significant negative effect on firm value in SMEs, but no significant effect in larger firms. Research limitations/implications: These findings extend Resource-Based Theory and Stakeholder Theory by clarifying the theoretical linkages between ESG components and key firm outcomes. The results highlight how the impact of ESG performance on firm value and financial performance depends on both the type of ESG factor and firm characteristics, underscoring the need for theoretically grounded, context-specific ESG strategies. Originality/value: This study offers a nuanced view of ESG effectiveness by incorporating firm-specific moderators and aligning ESG components with theoretical constructs. By identifying how each ESG dimension contributes to financial performance and increases firm value, it provides practical insights for managers and policymakers aiming to integrate ESG into long-term strategic planning. © The Author(s).
Corporate value; CSR; ESG; ESG assessment; ESG performance; Financial performance; KEJI index; Multi-group analysis (MGA)