TY - JOUR
T1 - Does corporate ESG news impact firm productivity?
AU - Arthur, Joseph
AU - Bilson Darku, Francis
AU - Owusu, Abena Fosua
N1 - Publisher Copyright:
© 2025 Elsevier Inc.
PY - 2025/4
Y1 - 2025/4
N2 - 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.
AB - 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.
KW - AI-generated ESG news score
KW - ESG news
KW - Firm productivity
KW - Truvalue lab
UR - http://www.scopus.com/inward/record.url?scp=85217035913&partnerID=8YFLogxK
U2 - 10.1016/j.frl.2025.106883
DO - 10.1016/j.frl.2025.106883
M3 - Article
AN - SCOPUS:85217035913
SN - 1544-6123
VL - 75
JO - Finance Research Letters
JF - Finance Research Letters
M1 - 106883
ER -