ESG: A panacea for market power?

• 成果类型: Article
• 署名作者: Bond, Philip; Levit, Doron
• 署名单位: University of Washington; University of Washington Seattle
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2024.103991
• 发表日期: 2025
• 关键词: esg; Shareholder primacy; Stakeholder capitalism; Corporate social responsibility; corporate governance; market power

摘要

We study the equilibrium effects of the S dimension of ESG under imperfect competition. ESG policies are pledges made by firms that constrain managers to treat their stakeholders better than market conditions alone dictate. Moderate policies limit market power and prompt managers to be more competitive; aggressive polices backfire, both for adopting firms and intended beneficiaries. In contrast to the shareholder primacy paradigm, competition in ESG policies under the stakeholder capitalism paradigm is a panacea for market power, delivering the first-best outcome in equilibrium. We discuss drivers behind the recent rise in ESG, ESG-linked compensation, and disclosure practices.