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Does corporate ESG news impact firm productivity?

Author

Listed:
  • Arthur, Joseph
  • Bilson Darku, Francis
  • Owusu, Abena Fosua

Abstract

This paper examines the relationship between ESG and firm productivity, addressing how ESG news impacts productivity across operational and financial dimensions. Using Truvalue Lab's AI-generated ESG score data, we analyze how near- and long-term ESG news scores influence key productivity indicators such as sales generation, operating costs (SG&A), and labor costs. We find that non-financial firms with positive ESG news scores experience reduced productivity, as ESG news improves sales, decreases operating costs, and increases labor costs. These findings highlight how ESG influences various operational and financial aspects of firm productivity.

Suggested Citation

  • Arthur, Joseph & Bilson Darku, Francis & Owusu, Abena Fosua, 2025. "Does corporate ESG news impact firm productivity?," Finance Research Letters, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:finlet:v:75:y:2025:i:c:s1544612325001485
    DOI: 10.1016/j.frl.2025.106883
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    More about this item

    Keywords

    ESG news; Firm productivity; Truvalue lab; AI-generated ESG news score;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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