Environmental, Social, and Governance (ESG) Practices and Financial Performance: A Qualitative Systematic Literature Review of Evidence from Emerging Markets
DOI:
https://doi.org/10.70142/jbs.v3i1.131Keywords:
ESG practices, financial performance, emerging markets, Financial constraints, systematic literature review, sustainability reportingAbstract
This study provides a qualitative systematic literature review examining the relationship between Environmental, Social, and Governance (ESG) practices and financial performance in emerging markets. Drawing on peer reviewed studies published up to 2024, the review synthesizes empirical and theoretical evidence to identify dominant patterns, contextual drivers, and methodological approaches. The findings indicate that ESG practices generally have a positive but context-dependent impact on firm financial performance, influenced by institutional quality, regulatory frameworks, and stakeholder pressures. Environmental and governance dimensions tend to show stronger financial relevance, while social factors exhibit more variable outcomes across regions. The review also highlights inconsistencies arising from measurement differences, data limitations, and varying ESG disclosure standards in emerging markets. Overall, the study underscores the strategic importance of ESG integration while emphasizing the need for more standardized metrics and context-sensitive frameworks to enhance comparability and reliability in future research.
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