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The Impact of ESG on Business Operating Performance in Taiwan

Lai Ferry Sugianto et al.

Review of Pacific Basin Financial Markets and Policies2026https://doi.org/10.1142/s0219091526500177article
ABDC B
Weight
0.50

What the paper says

This study examines the impact of Environmental, Social, and Governance (ESG) scores on business operating performance, using data from 2,137 publicly listed Taiwanese firms between 2016 and 2023. Operating performance is assessed using both traditional labor productivity ratios and Data Envelopment Analysis (DEA). The empirical findings indicate that the ESG dimensions influence operating performance asymmetrically: the Environmental ([Formula: see text]) dimension has a negative effect, while the Governance ([Formula: see text]) dimension has a positive effect. In contrast, the Social ([Formula: see text]) dimension does not show a consistent impact on operating performance. Moreover, the relationship between ESG and performance is moderated by industry and firm size. Mediation analysis using the Sobel test further reveals that operating performance partially mediates the effect of ESG on both financial and market performance, measured by Return on Assets (ROA) and Tobin’s Q, respectively. Social and governance strategies are most effective when they emphasize human capital as a mediating channel.

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https://doi.org/https://doi.org/10.1142/s0219091526500177

Or copy a formatted citation

@article{lai2026,
  title        = {{The Impact of ESG on Business Operating Performance in Taiwan}},
  author       = {Lai Ferry Sugianto et al.},
  journal      = {Review of Pacific Basin Financial Markets and Policies},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1142/s0219091526500177},
}

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.