Does size matter? Exploring the moderating role of firm size in the ESG–profitability relationship

Öz

This study investigates the impact of environmental, social, and governance (ESG) performance on firm financial outcomes, with a particular focus on the moderating role of firm size. Using panel data from 227 U.S.-based consumer sector companies obtained from the S&P Global database, the analysis centers on earnings before interest and taxes (EBIT) to measure operational profitability. Anchored in signaling theory and trade-off theory, the study aims to explore whether firm size influences the strength and direction of the ESG–financial performance relationship. Contrary to theoretical expectations, the results reveal a negative relationship between ESG performance and EBIT, while firm size is positively associated with EBIT. Importantly, the interaction term between ESG performance and firm size exerts a positive and statistically significant effect on EBIT, confirming the moderating role of firm size. Similar results were obtained in the robustness check conducted on a subsample of firms whose size exceeded the sample mean, reinforcing the conclusion that larger firms are better positioned to convert ESG initiatives into financial benefits. These findings suggest that the financial benefits of ESG initiatives are more likely to materialize in larger firms, which are better equipped to absorb ESG-related costs and leverage reputational gains. The study contributes to the sustainable finance literature by offering empirical insights into how firm-specific characteristics shape the effectiveness of ESG strategies. Practical implications are also provided for investors, regulators, and corporate decision-makers aiming to reconcile sustainability goals with financial performance.

Anahtar Kelimeler

• esg
• firm size
• profitability
• sustainability

Firma büyüklüğü önemli midir? Firma büyüklüğünün ESG–karlılık ilişkisindeki düzenleyici rolünün incelenmesi

Öz

Bu çalışma, çevresel, sosyal ve yönetişim (ESG) performansının şirket finansal sonuçları üzerindeki etkisini, özellikle de şirket büyüklüğünün düzenleyici rolüne odaklanarak araştırmaktadır. S&P Global veritabanından elde edilen 227 ABD merkezli tüketici sektörü şirketinden alınan panel verileri kullanılarak yapılan analiz, operasyonel karlılığı ölçmek için faiz ve vergi öncesi kara (FVÖK) odaklanmaktadır. Sinyal ve takas teorisine dayanan çalışma, şirket büyüklüğünün ESG-finansal performans ilişkisinin gücünü ve yönünü etkileyip etkilemediğini araştırmayı amaçlamaktadır. Teorik beklentilerin aksine, sonuçlar ESG performansı ile FVÖK arasında negatif bir ilişki ortaya koyarken, şirket büyüklüğü FVÖK ile pozitif ilişkilidir. Daha da önemlisi, ESG performansı ile şirket büyüklüğü arasındaki etkileşim terimi, FVÖK üzerinde pozitif ve istatistiksel olarak anlamlı bir etki uygulayarak şirket büyüklüğünün düzenleyici rolünü doğrulamaktadır. Benzer sonuçlar, büyüklüğü örneklem ortalamasını aşan bir alt örneklemde yürütülen sağlamlık kontrolünde de elde edilmiş olup, daha büyük şirketlerin ESG girişimlerini finansal faydalara dönüştürme konusunda daha iyi konumda olduğu sonucunu desteklemektedir. Bu bulgular, ESG girişimlerinin finansal faydalarının, ESG ile ilgili maliyetleri absorbe etmek ve itibar kazanımlarını artırmak için daha iyi donanımlı olan daha büyük firmalarda gerçekleşme olasılığının daha yüksek olduğunu göstermektedir. Çalışma, firmaya özgü özelliklerin ESG stratejilerinin etkinliğini nasıl şekillendirdiğine dair ampirik içgörüler sunarak sürdürülebilir finans literatürüne katkıda bulunmaktadır. Sürdürülebilirlik hedeflerini finansal performansla uzlaştırmayı amaçlayan yatırımcılar, düzenleyiciler ve kurumsal karar vericiler için de pratik çıkarımlar sağlanmaktadır.

Anahtar Kelimeler

• esg
• firma büyüklüğü
• karlılık
• sürdürülebilirlik

Kaynakça

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