ESG Metrics and Financial Performance Final Data

Drawing upon Stakeholder Theory, Institutional Theory, and the Resource-Based View, the study employs static (FGLS) and dynamic (Difference GMM) panel estimations to evaluate both short-term and long-term ESG effects.

The static results indicate that aggregate ESG performance positively influences free cash flow but negatively affects revenue growth, while exhibiting no significant effect on profitability or market valuation. Disaggregated analysis reveals that environmental performance enhances free cash flow and Tobin's Q, whereas social performance negatively affects revenue growth and market valuation. Dynamic estimations show that aggregate ESG and environmental performance generate significant long-term growth benefits, while social performance improves free cash flow.