Relationship Between ESG Factors and Organizational Performance in US Companies

Authors

DOI:

https://doi.org/10.20397/2177-6652/2026.v26i1.3405

Keywords:

Fatores ESG. Desempenho Organizacional. Companhias Norte-Americanas

Abstract

This study analyzes the relationship between Environmental, Social, and Governance (ESG) factors and the organizational performance of 844 US companies between 2020 and 2024. Using a quantitative approach with multiple regression and data from the LSEG Data & Analytics database, the research investigates how sustainability metrics and corporate controversies influence the market capitalization of firms. The results indicate that Total Assets are the main determinant of market value, but ESG factors play distinct and complex roles. A negative relationship was observed between the overall ESG score and firm value, supporting the hypothesis of the cost of sustainability, where the market may interpret high socio-environmental investments as inefficiency or agency costs in the short term. On the other hand, the quality of Corporate Governance and profitability (ROE) are rewarded with higher valuation. The study also highlights the impact of ESG penalties, indicating that misconduct and controversies significantly reduce company value. In this scenario, the Social pillar emerges as the most effective mediator, as investments in labor and community relations reduce the likelihood of negative news. It concludes that, in the American market, sustainability is valued selectively, functioning primarily as a strategic tool for risk management and reputational protection, while governance remains the central pillar for shareholder value creation.

Author Biography

José Ribamar Marques de Carvalho, Universidade Federal de Campina Grande

Associate Professor at the Federal University of Campina Grande. Post-doctoral degree in Accounting Sciences from UNISINOS. PhD in Engineering and Management of Natural Resources.

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Published

2026-06-17

How to Cite

Carvalho, J. R. M. de. (2026). Relationship Between ESG Factors and Organizational Performance in US Companies. Revista Gestão & Tecnologia, 26(1), 94–119. https://doi.org/10.20397/2177-6652/2026.v26i1.3405

Issue

Vol. 26 No. 1 (2026)

Section

ARTIGO

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