ESG transparency on firm performance : an empirical research of Covid-19 in global logistics firms

Abstract

Supply chain management (SCM) facilitated by the forces of globalization and technology evolution was playing an unassailable role in serving the world. The impact of Covid-19 caused disruption to these supply chains. The objective of this paper is to investigate the quasi-potential impact of the environment, social, and governance (ESG) disclosure on the firms’ performance in the transportation and logistics industry and the influence of the pandemic. The empirical analysis, conducted on a sample of worldwide publicly traded companies, shows that the ESG disclosure score (ESGD) especially ESGD at higher level significantly contributes to firm value despite a relatively lower level of ESGD increases with a drop in firm value at the onset of the Covid-19 pandemic. As expected, the results also indicate that the effect of ESGD is significantly associated with a positive change in firm value during the pandemic and post-pandemic period.