International Journal of Internet, Broadcasting and Communication

The Institute of Internet, Broadcasting and Communication (한국인터넷방송통신학회)
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ESG Performance and Corporate Value: Evidence from Korean IT Companies

  • Joon Woo Park (Dept. of Business Administration, Cheongju University)
  • Received : 2023.07.10
  • Accepted : 2023.07.16
  • Published : 2023.08.31
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Abstract

Due to the growing importance of ESG management, various studies have been conducted to explore the relationship between ESG performance and corporate value. The purpose of this study is to investigate how a company's ESG performance impacts its corporate value. The research findings indicate that there is difficulty in explaining the relationship between ESG performance of Korean IT companies and firm value in a straightforward manner. However, the results demonstrate that companies with higher profitability, higher foreign ownership, and higher R&D expenditure tend to have a positive impact of ESG ratings on corporate value. Based on these results, we can infer that Korean IT companies can enhance their corporate value by increasing R&D investments to develop innovative products that improve profitability. Additionally, attracting higher foreign investments can also positively influence ESG performance and subsequently increase corporate value. Acknowledging these factors can help companies realize the significance of ESG performance in elevating their overall corporate value.

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