The relationships between corporate sustainability and market value: mediating role of revenue and moderating role of profitability

Komath M. A. C., SAYILIR Ö., DOĞAN M.

International Journal of Disclosure and Governance, 2025 (ESCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Basım Tarihi: 2025
  • Doi Numarası: 10.1057/s41310-025-00288-1
  • Dergi Adı: International Journal of Disclosure and Governance
  • Derginin Tarandığı İndeksler: Emerging Sources Citation Index (ESCI), Scopus, Academic Search Premier, ABI/INFORM, Business Source Elite, Business Source Premier
  • Anahtar Kelimeler: ESG, Environmental performance, Social performance, Governance performance, Market value, Q56, G34, O16
  • Manisa Celal Bayar Üniversitesi Adresli: Evet

Özet

This study attempts to analyze the relationships between corporate sustainability performance and market value. We employ 2018–2022 annual data obtained from Refinitiv ESG Database comprising 5450 companies. We utilize Hayes Process Modeling to investigate this relationship and also the mediating role of revenue and the moderating role of profitability in this relationship. Our findings show that all corporate sustainability performance measures (overall ESG, environmental pillar, social pillar, and governance pillar scores) have a significant relationship with the market value of firms. Total revenues seem to mediate the relationship between corporate sustainability performance and market value. The direct effect of corporate sustainability performance measures on the market value as well the indirect effect of corporate sustainability performance on market value through revenues is moderated by profitability (Return on Assets). Our findings may provide valuable insights for companies seeking to leverage corporate sustainability performance to improve market value.