Contextual Impact of Sustainable Initiatives on Firms' Profitability Within Global Supply Chain
研究了环境、社会和治理（ESG）指数对企业财务绩效的非线性影响，考虑了行业和地区背景的调节作用，为ESG采纳提供战略指导。
ABSTRACT The importance of sustainable initiatives and their impact on corporate financial performance (CFP) remains a subject of considerable academic debate, frequently characterized by mixed and inconclusive results. Such inconsistency stems from the overlooked and complex nature of sustainable initiatives, financial mechanisms, and inherent heterogeneity across industries and geographical regions within the global supply chain. To address these issues, this study analyzes the higher order of the nonlinear impacts of Environmental, Social, and Governance (ESG) as a well‐known sustainability index on firms' financial performance. Using a two‐step System GMM model, the study depicts the different functional forms of the ESG‐CFP relationship, accounting for linear, squared, and cubic terms of ESG, as well as interactions between ESG and industry‐ and region‐level contexts. Furthermore, by calculating the turning points of the nonlinear ESG effects, the study provides strategic guidance for ESG adoption and integration.