Corporate Governance and ESG Performance in the Digital Age: An Quantile Regression Approach

Corporate Governance and ESG Performance in the Digital Age: An Quantile Regression Approach | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Corporate Governance and ESG Performance in the Digital Age: An Quantile Regression Approach G SRINIVAS KULKARNI This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-9551221/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract Purpose: - This study examines the impact of corporate governance mechanisms on ESG Performance in S&P 500 firms using quantile regression. Larger boards and higher CEO compensation increase in ESG , while board independence, gender diversity, and CSR committees reduce them, highlighting their role in improving sustainability oversight. Methodology: - The study utilizes a panel dataset of S&P 500 firms spanning 2018-2025. ESG controversies serve as the dependent variable, while governance indicators board size, board independence, gender diversity, CEO compensation, and CSR committee presence are the key explanatory variables. A quantile regression approach is employed to capture heterogeneous effects across different levels of ESG performance distribution, offering deeper insights beyond mean-based estimations. Control variables related to firm characteristics are included to ensure robustness. Findings:- The empirical results reveal significant heterogeneity in governance effects across quantiles. Larger boards and higher CEO compensation are positively associated with ESG Performance, suggesting inefficiencies and short-termism. Board independence, gender diversity, and CSR committees consistently demonstrate a Positive relationship with ESG performance, indicating their effectiveness in enhancing corporate accountability and sustainability practices. The impact of governance mechanisms is more pronounced at higher quantiles. Practical Implications: - Firms should strengthen governance frameworks to enhance ESG performance. Board diversity, independent oversight, and dedicated CSR committees help integrate sustainability into corporate strategy. Effective governance also improves disclosure quality and stakeholder confidence, leading to better ESG outcomes. Originality/Value:- Provides empirical evidence and reveals distributional governance effects using quantile regression. Corporate Governance ESG performance Quantile regression approach Sustainability S&P500 Full Text Additional Declarations The authors declare no competing interests. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-9551221","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":630904350,"identity":"1d65faf6-0028-47df-9731-94e417ba6e44","order_by":0,"name":"G SRINIVAS KULKARNI","email":"data:image/png;base64,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","orcid":"https://orcid.org/0009-0007-9544-8244","institution":"woxsen university","correspondingAuthor":true,"prefix":"","firstName":"G","middleName":"SRINIVAS","lastName":"KULKARNI","suffix":""}],"badges":[],"createdAt":"2026-04-28 08:53:50","currentVersionCode":1,"declarations":{"humanSubjects":false,"vertebrateSubjects":false,"conflictsOfInterestStatement":false,"humanSubjectEthicalGuidelines":false,"humanSubjectConsent":false,"humanSubjectClinicalTrial":false,"humanSubjectCaseReport":false,"vertebrateSubjectEthicalGuidelines":false},"doi":"10.21203/rs.3.rs-9551221/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-9551221/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":108090118,"identity":"5699271d-650a-4c58-adb5-fd39e7c59b20","added_by":"auto","created_at":"2026-04-29 09:11:37","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":403514,"visible":true,"origin":"","legend":"","description":"","filename":"Manuscript.pdf","url":"https://assets-eu.researchsquare.com/files/rs-9551221/v1_covered_4d10136b-4a59-411b-b5cb-e72cb7c988e8.pdf"}],"financialInterests":"The authors declare no competing interests.","formattedTitle":"\u003cp\u003e\u003cstrong\u003eCorporate Governance and ESG Performance in the Digital Age: An Quantile Regression Approach\u003c/strong\u003e\u003c/p\u003e","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":true,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"Corporate Governance, ESG performance, Quantile regression approach, Sustainability, S\u0026P500","lastPublishedDoi":"10.21203/rs.3.rs-9551221/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-9551221/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003e\u003cstrong\u003ePurpose: -\u003c/strong\u003e This study examines the impact of corporate governance mechanisms on ESG Performance in S\u0026amp;P 500 firms using quantile regression. Larger boards and higher CEO compensation increase in ESG , while board independence, gender diversity, and CSR committees reduce them, highlighting their role in improving sustainability oversight.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eMethodology: -\u003c/strong\u003e The study utilizes a panel dataset of S\u0026amp;P 500 firms spanning 2018-2025. ESG controversies serve as the dependent variable, while governance indicators board size, board independence, gender diversity, CEO compensation, and CSR committee presence are the key explanatory variables. A quantile regression approach is employed to capture heterogeneous effects across different levels of ESG performance distribution, offering deeper insights beyond mean-based estimations. Control variables related to firm characteristics are included to ensure robustness.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eFindings:-\u003c/strong\u003eThe empirical results reveal significant heterogeneity in governance effects across quantiles. Larger boards and higher CEO compensation are positively associated with ESG Performance, suggesting inefficiencies and short-termism. Board independence, gender diversity, and CSR committees consistently demonstrate a Positive relationship with ESG performance, indicating their effectiveness in enhancing corporate accountability and sustainability practices. The impact of governance mechanisms is more pronounced at higher quantiles.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003ePractical Implications: -\u003c/strong\u003e Firms should strengthen governance frameworks to enhance ESG performance. Board diversity, independent oversight, and dedicated CSR committees help integrate sustainability into corporate strategy. 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