How do environmental, social and governance initiatives and controversies explain the firm efficiency of Chinese energy companies?

被引:5
作者
Kweh, Qian Long [1 ]
Ting, Irene Wei Kiong [2 ]
Ren, Chunya [2 ]
Asif, Jawad [3 ]
机构
[1] Canadian Univ Dubai, Sch Management, Dubai, U Arab Emirates
[2] Univ Malaysia Pahang Al Sultan Abdullah, Fac Ind Management, Gambang, Malaysia
[3] Univ Gujrat, Dept Commerce, Gujrat, Pakistan
关键词
ESG; Firm efficiency; Data envelopment analysis; Epsilon-based measure; Generalised additive model; Chinese energy sector; ESG; PERFORMANCE; DEA; RESPONSIBILITY; DISTRIBUTIONS;
D O I
10.1108/K-12-2023-2704
中图分类号
TP3 [计算技术、计算机技术];
学科分类号
0812 ;
摘要
PurposeThis study investigates how the initiatives and controversies related to environmental, social and governance (ESG) explain firm efficiency.Design/methodology/approachFirstly, this study applies data envelopment analysis with the epsilon-based measure to estimate the firm efficiency of 80 companies in the Chinese energy sector in 2022. This approach accounts for the diversity and relative importance of inputs and outputs from a multidimensional perspective. Secondly, this study regresses the variables of ESG initiatives and controversies on the estimated firm efficiency scores through a generalised additive model, which can capture nonlinear patterns.FindingsThis study finds that a) the samples have i) about 49% room for improvement in efficiently optimising their resources and business outcomes and ii) the highest scores in governance initiatives, followed by social initiative. b) 69% of them have controversy scores that are greater than the average value. c) A cluster analysis indicates that companies with higher social initiatives have higher firm efficiency than their counterparts. d) ESG initiatives and controversies are nonlinearly related to firm efficiency.Research limitations/implicationsThe findings have practical implications for policy makers and managers who prioritise ESG, particularly regarding (i) the need to examine firm performance from a multidimensional perspective, that is, to measure multiple inputs and outputs simultaneously, (ii) the nonlinearity of the nexus between ESG and efficiency in graphical forms, and (iii) the need to balance ESG initiatives and address ESG controversies.Originality/valueThis study integrates statistical approaches in examining and ensuring sustainable growth and efficiency within the Chinese energy sector and beyond.
引用
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页数:23
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