{"title":"Does ESG Consistently Promote the Corporate Financial Performance? A Study of the Global Cruise Industry","authors":"Yuechen Wu","doi":"arxiv-2409.00758","DOIUrl":null,"url":null,"abstract":"The analysis of determinants of a company's financial performance has aroused\nsignificant attention, particularly, the environmental, social, and governance\n(ESG) has been the research focus in recent years. In addition to increasing\nrevenue, the cruise industry has actively embraced the initiative of \"green\nshipping\". This study investigates the relationship between ESG and corporate\nfinancial performance (CFP) in the global cruise sector. This paper utilizes\nthe sample data from the world's largest cruise companies over 2012-2023, to\nexamine the ESG-CFP relationship by a regression model. The results indicate\nthat ESG practices in cruise companies negatively influence CFP, which is\nfurther impacted by financial constraints. Furthermore, the heterogeneity\nanalysis suggests that the high time interest earned (TIE) ratios and low total\nannual greenhouse gas (GHG) emissions worsen the adverse impacts of ESG on CFP.\nThese findings contribute to the theoretical research on ESG and provide\npractical guidance for cruise industry operators and investors in their\ndecision-making.","PeriodicalId":501273,"journal":{"name":"arXiv - ECON - General Economics","volume":"9 1","pages":""},"PeriodicalIF":0.0000,"publicationDate":"2024-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"arXiv - ECON - General Economics","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/arxiv-2409.00758","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0
Abstract
The analysis of determinants of a company's financial performance has aroused
significant attention, particularly, the environmental, social, and governance
(ESG) has been the research focus in recent years. In addition to increasing
revenue, the cruise industry has actively embraced the initiative of "green
shipping". This study investigates the relationship between ESG and corporate
financial performance (CFP) in the global cruise sector. This paper utilizes
the sample data from the world's largest cruise companies over 2012-2023, to
examine the ESG-CFP relationship by a regression model. The results indicate
that ESG practices in cruise companies negatively influence CFP, which is
further impacted by financial constraints. Furthermore, the heterogeneity
analysis suggests that the high time interest earned (TIE) ratios and low total
annual greenhouse gas (GHG) emissions worsen the adverse impacts of ESG on CFP.
These findings contribute to the theoretical research on ESG and provide
practical guidance for cruise industry operators and investors in their
decision-making.