RESEARCH ARTICLE
State Influence on ESG Performance in Emerging Markets: A Study of Institutional Roles
Ronaldo de Oliveira Santos Jhunior,
Lucas dos Santos Costa,
Mariana Torres Uchoa,
Victor Pessoa de Melo Gomes,
Corresponding Author
Ronaldo de Oliveira Santos Jhunior
University of São Paulo, São Paulo, Brazil
FIPECAFI College, São Paulo, Brazil
Correspondence:
Ronaldo de Oliveira Santos Jhunior ([email protected])
Search for more papers by this authorLucas dos Santos Costa
University of São Paulo, São Paulo, Brazil
Search for more papers by this authorMariana Torres Uchoa
University of São Paulo, São Paulo, Brazil
Search for more papers by this authorRonaldo de Oliveira Santos Jhunior,
Lucas dos Santos Costa,
Mariana Torres Uchoa,
Victor Pessoa de Melo Gomes,
Corresponding Author
Ronaldo de Oliveira Santos Jhunior
University of São Paulo, São Paulo, Brazil
FIPECAFI College, São Paulo, Brazil
Correspondence:
Ronaldo de Oliveira Santos Jhunior ([email protected])
Search for more papers by this authorLucas dos Santos Costa
University of São Paulo, São Paulo, Brazil
Search for more papers by this authorMariana Torres Uchoa
University of São Paulo, São Paulo, Brazil
Search for more papers by this authorFunding: The authors received no specific funding for this work.
ABSTRACT
This study investigates how institutional factors, specifically the role of the State, influence corporate ESG performance in emerging markets. Using a dataset of 293 companies operating in sensitive industries from 2017 to 2021, the analysis employs panel data models to assess the impact of State Direct Dominance (SDD), State Indirect Intervention (SII), and State typologies. The results indicate that SDD negatively affects ESG scores, potentially due to increased bureaucracy. Conversely, SII, characterized by mechanisms such as policy incentives and governance support, positively influences ESG outcomes. Additionally, companies operating in predatory States exhibit significantly lower ESG performance, highlighting governance challenges in such environments. This study provides actionable insights for policymakers, managers, and investors to promote sustainable corporate practices in emerging economies. By emphasizing the nuanced impacts of State interventions, the research advances the understanding of institutional dynamics shaping ESG outcomes.
Conflicts of Interest
The authors declare no conflicts of interest.
Open Research
Data Availability Statement
The data that support the findings of this study are available from the corresponding author upon request.
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