ESG practices, risk-taking behavior, and firm value: evidence from the tourism and hospitality sector in China
研究了中国旅游和酒店企业的ESG实践如何影响股票市场价值，发现ESG实践降低了股票价值但增加了财务价值，并揭示了风险承担行为的中介作用和组织管理因素的调节作用。
This paper delves into how and why environmental, social, and governance (ESG) practices impact stock market value (vs. financial value) of tourism and hospitality firms in China. We investigate the roles of risk-taking behavior and context factors related to ESG practices to develop the conceptual framework of “Practice – Atmosphere – Response”. We argue the influence of ESG practices is partially determined by risk-taking behavior, to which market response can be adjusted by organizational and managerial factors. Utilizing a quarterly-level fixed-effects regression analysis, the empirical findings indicate: (1) ESG practices decrease stock market value (vs. increase their financial value) of tourism and hospitality firms; reduce their individual organizational risk-takings yet increase the industrial systematic risk-takings. (2) Individual organizational risk-taking behavior mediates the influence of ESG practices on the stock market value. (3) Organizational and managerial related contextual factors, such as firm type, analyst attention to the firm, managerial experience, demographic characteristics, and personality traits, can adjust the relationships between firm value, risk-taking behavior, and ESG practices. This paper advances the knowledge of sustainable tourism governance by exploring the intricate interplay between ESG practices, risk-taking behavior, and firm value within China’s tourism and hospitality sector.