Exploring the Causal Links between ESG, R&D, and Firm Performance: Evidence from the US Technology and Food Companies
Exploring the Causal Links between ESG, R&D, and Firm Performance: Evidence from the US Technology and Food Companies
Author(s): Gözde Bozkurt, Semra Boğa Şahin, Hasan Sadık Tatli, Tom GillpatrickSubject(s): Business Economy / Management, Energy and Environmental Studies, Financial Markets, Public Finances, ICT Information and Communications Technologies, Socio-Economic Research
Published by: SAV - Slovenská akadémia vied - Ekonomický ústav SAV a Prognostický ústav SAV
Keywords: ESG criteria; firm performance; R&D; food industry; technology sector; causality
Summary/Abstract: This study examines the causal relationships between ESG (Environmental, Social, and Governance) compliance, R&D expenditures, and financial performance in the technology and food sectors in the US. A panel dataset from 2012-2021 from the Thomson Reuters database was analyzed for 12 food and 18 technology companies. The findings show that there are different causal relationships between sectors. While R&D investments in the technology sector positively affect firm performance by increasing ESG compliance, firm performance in the food sector directs ESG compliance, encouraging R&D investments. The study emphasizes that sectoral differences should be considered in sustainability and R&D strategies and guides policymakers and managers to develop approaches appropriate to the dynamics of the sector.
Journal: Ekonomický časopis
- Issue Year: 73/2025
- Issue No: 03-04
- Page Range: 99-120
- Page Count: 22
- Language: English
