The effect of ESG on financial performance and firm value: The moderating role of CEO power in the ISE
محورهای موضوعی : International Journal of Finance, Accounting and Economics Studies
Saleh Mahdi Abd Ali Ahmed
1
(Department of Accounting, Isfahan (Khorasgan) Branch,Islamic Azad University, Isfahan, Iran)
saeid aliahmadi
2
(Department of Accounting, Isfahan (Khorasgan) Branch,Islamic Azad University, Isfahan, Iran.)
Faez Abdulhasan Jasim Jasim
3
(Department Business of Administration, college of Administration and Economics, University of Misan, Amarah, 62001, Misan, Iraq)
Afsaneh Soroushyar
4
(Department of Accounting, Isfahan (Khorasgan) Branch,Islamic Azad University, Isfahan, Iran.)
کلید واژه: CEO power, ESG, Financial Performance, Firm Value, Stakeholders Theory.,
چکیده مقاله :
The purpose of the present study is to analyze the moderating impact of CEO power on the link between environmental, social and, governance (ESG) and financial performance and firm value in the Iraq Stock Exchange (ISE). With a sample of ISE covering 2013-2022, multivariate linear regression estimation was used to test the study hypotheses by panel data method. The study sample includes 440 firm-year observations (44 firms). the financial performance (FP) and firm value (FV) were used as dependent variables. ESG score and CEO power were used as independent and interaction variables, respectively. The authors' results indicate that the link between ESG and FP improves under the influence of CEO power. Also, the findings show that the power of the CEO has a significant impact on association between ESG score and FV. These results remained stable by performing robustness checks. The findings of the study confirmed the stakeholder theory. The critical contribution of this study is that it is one of the early studies that provides insight into the interaction impact of the power of the CEO on the link between ESG and FP (or ESG and FV) in Iraq’ emerging economy
