Do Firms ESG Commitments Affect Investment in-Efficiency in the Global Context

Abstract

This paper has examined the relationship between (ESG) environmental, social, and Governance performance and firm investment in-efficiency in global economies. This paper's empirical results are estimated using fixed-effect with robust standard error and GMM. These results are consistent with our study hypothesis and prior literature and have suggested that ESG practices reduce a firm's investment in-efficiency by mitigating issues such as information asymmetries and agency conflicts. Moreover, we have also determined the negative relationship between firm's ESG performance and a firm's investment in-efficiency.