20.500.12556/RUL-170614 The impact of ESG controversies on the financial performance of firms an analysis of industry and country clusters Stakeholders have become increasingly interested in sustainable practices, leading to intense investigation in the literature of their effects on companies' returns. However, not much information is available about the effect of environmental, social, and governance (ESG) controversy on companies' financial performance. Inappropriate social behavior and environmental scandals attract attention in the media and, consequently, among investors. Therefore, this study analyzes the impact of ESG controversy on companies' return on equity, identifying differences between companies that operate in different clusters such as environmentally sensitive industries (ESI) or non–environmentally sensitive industries and emerging/developed countries. To this end, we investigate 625 publicly owned companies for the period 2011 to 2022, using a four-dimensional hierarchical linear regression model, comprising time, firms, industries, and countries. ESG controversies negatively impact the financial performance of companies operating in ESI and developed countries. company performance sustainable development sustainable development goals emerging countries environmentally sensitive industries ESG controversies poslovanje podjetja trajnostni razvoj cilji trajnostnega razvoja true false true Angleški jezik Slovenski jezik Članek v reviji 2025-07-10 09:57:01 2025-07-10 10:05:50 2025-07-13 04:03:07 0000-00-00 00:00:00 2024 0 0 Str. 1305-1315 Iss. 6 Vol. 24 Nov. 2024 0000-00-00 Zaloznikova Objavljeno NiDoloceno 0000-00-00 0000-00-00 0000-00-00 502.131.1 2214-8450 10.1016/j.bir.2024.08.001 204478211 1-s2.0-S2214845024001194-main.pdf 1-s2.0-S2214845024001194-main.pdf 1 E6957FE2103F1020ED7E2934159A5D84 a95bbb0dafd9e10768984542a0edd89a3332e79f386b67d245795da9847d4740 959afbde-5d62-11f0-b232-0050569b8976 https://repozitorij.uni-lj.si/Dokument.php?lang=slv&id=212646 https://www.sciencedirect.com/science/article/pii/S2214845024001194 0 9e5a257a-5d62-11f0-b232-0050569b8976 https://repozitorij.uni-lj.si/Dokument.php?lang=slv&id=212647 Ekonomska fakulteta 0 0 0