Environmental, social, and governance (ESG) initiative scores and firm performance: the importance and role of firm size
使用效应分解回归框架分析ESG评分对企业绩效的影响，发现企业规模至关重要：大企业呈U型曲线，小企业则单调递增。
Abstract This study employs an effect decomposition regression (EDR) framework to analyze the impact of ESG scores on firm performance, focusing on the importance of firm size. A key finding of this study is that firm size matters in characterizing this relationship. For large firms, ESG scores significantly impact total revenues and are characterized by a U-shaped curve where ESG scores initially reduce firm performance, but later switch to a positive impact as scores rise. On the other hand, smaller firms exhibit a monotonically increasing or incremental benefit from ESG scores. This research underscores the necessity of controlling for firm size and further suggests that examining the impact of ESG scores by firm size groups may be essential for understanding the underlying dynamics. From a policy perspective, it is clear that one must consider firm size before advocating for practices as a universal value-enhancing proposition for all firms.