ESG and firm performance: The effects of foreigners on board and export orientation

This study investigates whether environmental, social, and governance (ESG) disclosures enhance industry-adjusted firm performance and whether the presence of foreigners on board and export orientation affect this relationship. The Taiwan dataset from 2013 to 2020 indicates that ESG practices positively affect accounting- and market-based performance (i.e., adjusted Tobin's Q and adjusted MTB ratio). However, ESG has no significant relationship with purely market-based performance (i.e., adjusted Jensen Alpha and adjusted FF3). The results illustrate a significant joint effect of ESG with foreigners on board and export experience on accounting and market-based performance. The findings provide deeper insight into the complex relationship between sustainability practices, ownership structures, and international businesses. Our findings remain consistent when using alternative estimation methods to account for endogeneity and selection bias.