The Impact of ESG Performance and Adhocratic Culture on Financial Stability: A JGR-GARCH Modeling Approach Through the Lens of Double Materiality

The Impact of ESG Performance and Adhocratic Culture on Financial Stability: A JGR-GARCH Modeling Approach Through the Lens of Double Materiality | 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 The Impact of ESG Performance and Adhocratic Culture on Financial Stability: A JGR-GARCH Modeling Approach Through the Lens of Double Materiality Henda Rajhi This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-8354043/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 The modeling of financial volatility incorporating ESG criteria (Environmental, Social, and Governance) through a JGR-GARCH framework makes it possible to assess the influence of sustainability factors on the stability of financial markets, particularly during periods of financial disruption. This dynamic methodological approach captures volatility dynamics and successive shocks in stock prices, thereby providing an accurate measure of conditional volatility. Our findings indicate that a high level of ESG performance, combined with a culture of dynamic value creation, is generally associated with a significant reduction in volatility and improved corporate stability. However, the beneficial effect of this synergy varies across the business cycle. When GDP growth is favorable, the ESG, innovation nexus contributes more strongly to financial stability. This interaction highlights the crucial role of economic expansion phases in shaping the impact of non-financial policies on financial resilience. Finance JGR-GARCH modeling financial volatility ESG performance value creation culture sustainability risk 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-8354043","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":559863486,"identity":"ea718abe-0a2c-47fd-9462-8ba5e6e371e4","order_by":0,"name":"Henda 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