Purpose

The purpose of this paper is to investigate the direct and indirect links between environmental, social and governance (ESG) practices and financial performance using the mediate role of green innovation.

Design/methodology/approach

To test the current study hypotheses, the authors applied linear regressions with a panel data using the Thomson Reuters ASSET4 and Bloomberg database from a sample of 115 UK and 90 Germany companies selected from the ESG index over the period 2005–2019.

Findings

The results show that the strengths ESG increase the firm value and the weaknesses decrease it. In addition, the authors find that green innovation fully mediates the relationship between ESG practices and financial performance in UK and Germany.

Practical implications

The findings provide interesting implications to academics practitioners and regulators who are interested in discovering ESG score, financial performance and green innovation. The results also provide insights to regulators and the board of directors on future growth opportunities for the company and the country.

Originality/value

This study is unique in examining the mediation effect of green innovation on the relationship between ESG practices and financial performance.

中文翻译：

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ESG 与企业财务绩效：绿色创新的中介作用：英国普通法与德国民法

目的

本文的目的是利用绿色创新的中介作用，研究环境、社会和治理 (ESG) 实践与财务绩效之间的直接和间接联系。

设计/方法/方法

为了检验当前的研究假设，作者使用 Thomson Reuters ASSET4 和 Bloomberg 数据库对 2005 年至 2019 年期间从 ESG 指数中选出的 115 家英国和 90 家德国公司的样本应用了线性回归和面板数据。

发现

结果表明，优势 ESG 提高了公司价值，劣势降低了公司价值。此外，作者发现绿色创新充分调节了英国和德国的 ESG 实践与财务绩效之间的关系。

实际影响

这些发现为对发现 ESG 评分、财务业绩和绿色创新感兴趣的学术从业者和监管机构提供了有趣的启示。结果还为监管机构和董事会提供了有关公司和国家未来增长机会的见解。

原创性/价值

本研究在考察绿色创新对 ESG 实践与财务绩效之间关系的中介作用方面独树一帜。