TY - JOUR
T1 - State Influence on ESG Performance in Emerging Markets : A Study of Institutional Roles
AU - Santos Jhunior, Ronaldo de Oliveira
AU - dos Santos Costa, Lucas
AU - Uchoa, Mariana Torres
AU - de Melo Gomes, Victor Pessoa
N1 - Publisher Copyright: © 2025 ERP Environment and John Wiley & Sons Ltd.
PY - 2025/3
Y1 - 2025/3
N2 - This study investigates how institutional factors, specifically the role of the State, influence corporate ESG performance in emerging markets. Using a dataset of 293 companies operating in sensitive industries from 2017 to 2021, the analysis employs panel data models to assess the impact of State Direct Dominance (SDD), State Indirect Intervention (SII), and State typologies. The results indicate that SDD negatively affects ESG scores, potentially due to increased bureaucracy. Conversely, SII, characterized by mechanisms such as policy incentives and governance support, positively influences ESG outcomes. Additionally, companies operating in predatory States exhibit significantly lower ESG performance, highlighting governance challenges in such environments. This study provides actionable insights for policymakers, managers, and investors to promote sustainable corporate practices in emerging economies. By emphasizing the nuanced impacts of State interventions, the research advances the understanding of institutional dynamics shaping ESG outcomes.
AB - This study investigates how institutional factors, specifically the role of the State, influence corporate ESG performance in emerging markets. Using a dataset of 293 companies operating in sensitive industries from 2017 to 2021, the analysis employs panel data models to assess the impact of State Direct Dominance (SDD), State Indirect Intervention (SII), and State typologies. The results indicate that SDD negatively affects ESG scores, potentially due to increased bureaucracy. Conversely, SII, characterized by mechanisms such as policy incentives and governance support, positively influences ESG outcomes. Additionally, companies operating in predatory States exhibit significantly lower ESG performance, highlighting governance challenges in such environments. This study provides actionable insights for policymakers, managers, and investors to promote sustainable corporate practices in emerging economies. By emphasizing the nuanced impacts of State interventions, the research advances the understanding of institutional dynamics shaping ESG outcomes.
KW - emerging markets
KW - ESG performance
KW - institutional influences
KW - sensitive industries
KW - state interventions
UR - http://www.scopus.com/inward/record.url?scp=86000022772&partnerID=8YFLogxK
U2 - 10.1002/bsd2.70078
DO - 10.1002/bsd2.70078
M3 - Article
AN - SCOPUS:86000022772
SN - 2572-3170
VL - 8
SP - 1
EP - 24
JO - Business Strategy and Development
JF - Business Strategy and Development
IS - 1
M1 - e70078
ER -