Asia Marketing Journal | 2026
Authors: Whang J.; Lee J.-H.; Lee J.
DOI: 10.53728/2765-6500.1676
Journal: Asia Marketing Journal
Year: 2026
Publisher: Korean Marketing Association
Document Type: Article
Open Access: All Open Access; Gold Open Access; Green Open Access
Cited by: 0
This study uses stakeholder theory to investigate the impact of firms’ ESG activities on performance, paying particular attention to the moderating roles of executive ESG compensation (the “carrot”) and external ESG audits (the “stick”). Utilizing Thomson Reuters ESG data from 1,523 US firms over six years (2017–2022) and applying fixed-effects models, the analysis reveals that environmental and social activities are positively associated with firm performance. In contrast, governance activities are negatively related to financial performance but positively related to non-financial outcomes. Furthermore, executive ESG compensation and external audits positively moderate the relationship between ESG activities and firm performance. Executive compensation serves as a filtering mechanism that promotes performance-oriented ESG initiatives, while external audits enhance credibility and foster stakeholder trust through independent verification. These findings provide empirical support for the assertion of stakeholder theory that ESG activities can generate value for multiple stakeholder groups simultaneously. © (2026), (Korean Marketing Association). All rights reserved.
ESG activities; Executive ESG compensation; External ESG audits; Firm performance; Stakeholder theory