This study aims to investigate the nonlinear relationship between environmental, social and governance (ESG) and firm value (FV). The sample includes 38 Taiwan Stock Exchange listed high-tech firms with ESG disclosure between 2005 and 2020. Quantile regression estimation results indicate there is a nonlinear concave–convex ESG-FV relationship, which is also verified by the U-test. Furthermore, there is a different relationship between the individual ESG pillars and FV. The nexus between the environmental and social pillars and FV are concave–convex, whereas the governance pillar has no significant effect on FV. The model in this research offers a valuable analytical framework for exploring sustainability reporting as a driver of performance in the high-tech industry. Overall, we highlight Taiwan's high-tech firms should ensure that both the costs and benefits of the ESG performance for maintaining sustainable development and stakeholder engagement.
Relation:
Corporate Social Responsibility and Environmental Management 29(5), p.1527-1545
