Cao Zixia, Amrouche Nawel, Pei Zhi
The Business School, University of Colorado Denver, Denver, CO, 80217, USA.
School of Engineering, Computer Science and AI, Long Island University, Brooklyn, NY, 11201, USA.
J Environ Manage. 2025 Sep;392:126716. doi: 10.1016/j.jenvman.2025.126716. Epub 2025 Jul 29.
We integrate a game-theoretic model with an empirical analysis using system GMM model to provide a holistic approach in studying ESG (Environment, Social, and Governance) issues and to clarify the ongoing debate surrounding the impact of ESG initiatives on firm performance. Specifically, we focus on environmental innovation to examine whether such activities are associated with improved financial outcomes, while accounting for moderating roles of market and firm characteristics. We also incorporate firms' environmental reputation stocks, recognizing their critical influence on long-term financial performances. Our findings show that financial returns of environmental innovation are shaped by market and firm-level factors underscoring the importance of competitive dynamics and strategic decision-making. At the market level, the intensity of competition and the environmental innovation efforts of peer firms significantly affect individual firms' performances. At the firm level, we find that companies with stronger existing reputations in environmental innovation and greater innovation effectiveness and efficiency are better positioned to realize financial gains from their investments. Moreover, we differentiate the distinct effects of product-based versus price-based competition, highlighting their comparable influence. Overall, our study emphasizes the need for firm-specific capabilities, stakeholder alignment, and favorable market conditions to achieve sustainable competitive advantage through environmental innovation.
我们将博弈论模型与使用系统广义矩模型的实证分析相结合，以提供一种全面的方法来研究ESG（环境、社会和治理）问题，并澄清围绕ESG举措对公司绩效影响的持续争论。具体而言，我们专注于环境创新，以检验此类活动是否与改善财务结果相关联，同时考虑市场和公司特征的调节作用。我们还纳入了公司的环境声誉存量，认识到它们对长期财务绩效的关键影响。我们的研究结果表明，环境创新的财务回报受市场和公司层面因素的影响，这突出了竞争动态和战略决策的重要性。在市场层面，竞争强度和同行公司的环境创新努力显著影响个别公司的绩效。在公司层面，我们发现，在环境创新方面现有声誉较强、创新有效性和效率较高的公司，更有能力从其投资中实现财务收益。此外，我们区分了基于产品的竞争与基于价格的竞争的不同影响，突出了它们相当的影响力。总体而言，我们的研究强调，通过环境创新实现可持续竞争优势需要特定于公司的能力、利益相关者的一致以及有利的市场条件。
