Sustainable Human Capital Management, ESG, and Firm Performance: Moderating Role of ESG Disclosure

Sustainable Human Capital Management ESG Performance ESG Disclosure Firm Financial Performance Effects of Globalization Sustainability.

Authors

  • Stela Jorgji Rectorate, Polytechnic University of Tirana, Tirana,, Albania
  • Jonida Teta
    jonida_teta@hotmail.com
    Department of Production and Management, Polytechnic University of Tirana, Tirana,, Albania https://orcid.org/0000-0002-5725-0997
  • Saeed Mousa Department of Finance, Rennes School of Business, Rennes,, France
  • Vadim Ponkratov Institute for Research on Socio-Economic Transformations and Financial Policy, Financial University under the Government of the Russian Federation, Moscow,, Russian Federation
  • Izabella Elyakova Department of Economics and Finance, M.K. Ammosov North-Eastern Federal University, Yakutsk,, Russian Federation
  • Larisa Vatutina Department of Management, Moscow Polytechnic University, Moscow,, Russian Federation
  • Andrey Pozdnyaev Institute for Research on Socio-Economic Transformations and Financial Policy, Financial University under the Government of the Russian Federation, Moscow,, Russian Federation https://orcid.org/0000-0003-4038-6609
  • Tatiana Chernysheva 4) Institute for Research on Socio-Economic Transformations and Financial Policy, Financial University under the Government of the Russian Federation, Moscow, Russia. 7) Department of World Economics, M.V. Lomonosov Moscow State University, Moscow,, Russian Federation
  • Elena Romanenko Department of Economics, Logistics and Quality Management, The Siberian State Automobile and Highway University (SibADI), Omsk,, Russian Federation https://orcid.org/0000-0002-1448-2288
  • Mikhail Kosov 4) Institute for Research on Socio-Economic Transformations and Financial Policy, Financial University under the Government of the Russian Federation, Moscow, Russia. 9) Department of State and Municipal Finance, Plekhanov Russian University of Economics, Moscow,, Russian Federation
Vol. 5 No. 2 (2024): June
Research Articles

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This study investigates the relationships between sustainable human capital management practices, ESG performance, ESG disclosure, and firm financial performance. Using a sample of 387 S&P 500 firms from 2013 to 2023 and a panel data regression approach, we examine the impact of training expenditure, workforce diversity and inclusion, pay equity, and employee benefits on ESG performance. We also explore the association between ESG performance and ESG disclosure, the effect of ESG performance on financial performance, and the moderating role of ESG disclosure in the ESG-financial performance relationship. Our findings reveal that sustainable human capital management practices have a positive and significant impact on ESG performance, which in turn positively influences firm financial performance. We also find a positive relationship between ESG performance and ESG disclosure, and that ESG disclosure moderates the ESG-financial performance link, with the positive association being stronger for firms with higher levels of ESG disclosure. This study contributes to the literature by offering an integrated approach to examine the relationships between sustainable human capital management, ESG performance, ESG disclosure, and financial performance, providing novel insights into the drivers and outcomes of corporate sustainability in the context of human capital management.

 

Doi: 10.28991/HEF-2024-05-02-08

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