Korean Academic Society of Business Administration
[ Article ]
korean management review - Vol. 50, No. 6, pp.1571-1593
ISSN: 1226-1874 (Print)
Print publication date 31 Dec 2021
Received 03 May 2021 Revised 19 Jul 2021 Accepted 05 Aug 2021
DOI: https://doi.org/10.17287/kmr.2021.50.6.1571

기업의 ESG역량과 기업가치의 관계에 대한 연구: 소비자 인지의 조절효과를 중심으로

Yanghee Kim ; Junhee Seok ; Byungdo Kim
(First Author) Seoul National University Business School bigtoki07@snu.ac.kr
(Corresponding Author) KT Economics and Management Research Institute boss825@snu.ac.kr
(Co-Author) Seoul National University Business School bxk@snu.ac.kr
A Study on the Relationship between ESG Competency and Firm Value: Moderating Effect of Customer’s Awareness


Copyright 2011 THE KOREAN ACADEMIC SOCIETY OF BUSINESS ADMINISTRATION
This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

Given that consumers' awareness of a company's positive ESG activities can help improve the image and value of such a company, it raises the need for research that examines the role of consumer awareness in the relationship between ESG competency and firm value. This study examines the relationship between ESG competency and firm value by looking at the customer's awareness. The analysis showed the following two results. First, among ESG competencies, the environment and social evaluations had significantly positive effects on firm value, while the governance structure evaluation had no significant effect. In other words, a company's environmental and social competence, excluding that of corporate governance, is valuable information in enhancing its firm value to the stakeholders. Second, the effect of ESG competency on corporate value highly depends on the level of consumer awareness. In other words, the higher the level of consumers' awareness of ESG competency, the more significant the effect of ESG competency on the firm value. This study provides a variety of practical implications to corporate decision-makers by empirically verifying the effect of a company's ESG competency on its firm value and looking at ways to maximize such effect.

Keywords:

ESG, Customer awareness, Advertising, Firm value

Acknowledgments

This Study is supported by the Institute of Management Research at Seoul National University Research Fund (in 2021).

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∙ The author Yanghee Kim is a doctoral student at Seoul National University Graduate School of Business. Her main research areas include corporate social responsibility, ESG management, social capital, consumer decision-making, and marketing strategy using statistical modeling.

∙ The author Junhee Seok is a senior researcher of KT Economics and Management Research Institute. He received his Ph. D in business administration from Seoul National University. His recent research interests lie in corporate innovation, corporate social responsibility, ESG, word-of-mouth, and marketing strategy.

∙ The author Byungdo Kim is currently a professor at Seoul National University Business School. His major research fields include corporate social responsibility, database marketing, frequent customer compensation system, product/ service recommendation model, and deduction of optimal marketing strategy by applying statistical modeling.