Unlocking value: the moderating role of stakeholder engagement in the relationship between ESG performance and market value

Environmental, social and governance (ESG) strategies are associated with competitiveness and sustainable development, since they promote long-term profit, establish a positive relationship with society (Del Gesso and Lodhi, 2024), increase investor confidence and enable the development of ESG practices (Yoon et al., 2018). ESG performance is often included in corporate annual reports, serving as a key way for companies to communicate their environmental, social and governance practices to stakeholders (Aftab et al., 2024; Pinheiro et al., 2024b).

With the growing commitment of companies to develop sustainable practices, there is a greater involvement of stakeholders, given the potential for competitive advantages and the ease of creating value for the company (Stocker et al., 2020). Thus, the involvement of stakeholders in corporate strategies is seen as a means to organizational benefits (Kujala et al., 2022). Stakeholder engagement has a strong potential to impact environmental and social practices and procedures, which reflects the corporate role with society (Stocker et al., 2020).

Companies that demonstrate strong ESG principles are often seen as more sustainable, ethical and responsible, which can enhance their reputation and strengthen relationships with stakeholders (Maaloul et al., 2023). ESG indicators have garnered increasing attention from managers as a way to highlight their commitment to fostering a more sustainable environment and society (Bifulco et al., 2023). Yu and Xiao (2022) found that in China, companies with a stronger ESG profile tend to experience higher growth compared to those with a weaker ESG profile.

Stakeholder theory states that ESG practices behave based on the interests of stakeholders; consequently, they can improve business performance and company value (Yu and Xiao, 2022). In this vein, companies with more transparent information suggest lower risk to the market, thus enabling greater profitability on investments (Santos and Tavares, 2023). In this sense, stakeholder relationships not only contribute to value generation but also contribute to the sustainable business model (Attanasio et al., 2022). The relationship between ESG performance and company value can be influenced by the way the company interacts with stakeholders (Khamisu et al., 2024). Despite these previous studies, it is still unclear in the literature what the role of stakeholders is in the relationship between ESG and market value (Zheng et al., 2022).

Therefore, the article is guided by the following research problem: What is the moderating effect of stakeholder engagement on the relationship between ESG performance and market value of Mexico, Indonesia, Nigeria and Turkey (MINT) companies? The purpose is to verify the moderating effect of stakeholder engagement on the relationship between ESG performance and market value of MINT companies.

This study examines companies in countries from the MINT group, which are known for their large consumer markets, population growth, abundant natural resources and potential for economic development. However, these nations also face significant challenges, including social inequality, political instability and underdeveloped infrastructure. Emerging markets, in general, are grappling with serious social issues like corruption and poverty. Thus, the article addresses a unique context, discussing the need to promote business strategies combined with ESG practices and stakeholders to create financial value for companies in these markets.

This study contributes to the understanding of the mechanisms by which companies can improve their financial performance and market value through the effective implementation of social responsibility policies. We contribute to the existing literature by building on Dkhili’s (2024) study, exploring a different institutional context and introducing a new moderating variable. Additionally, this study contributes to the ESG literature of companies headquartered in emerging countries, since environmental practices in emerging markets are still in their early stages (Naeem et al., 2022; Pinheiro et al., 2024a).

Therefore, while numerous studies have examined ESG performance and firm value in emerging markets, this study advances the literature by focusing on the underexplored MINT countries and examining the moderating role of stakeholder engagement—a variable that has received limited attention in prior research. By combining panel regression with fsQCA, we provide complementary insights into both linear effects and complex configurational pathways, highlighting multiple mechanisms through which ESG and stakeholder engagement jointly influence market value. These contributions, though incremental, offer a more nuanced understanding of ESG–value relationships in emerging market contexts and provide a foundation for future research exploring richer stakeholder measures and longer-term effects. In addition to its theoretical contributions, this study offers practical implications for managers and policymakers in MINT countries.

Stakeholder theory argues that companies should not only focus on maximizing their profits and meeting shareholders' expectations (Freeman, 1984) but should also be responsible for the needs of other stakeholders, which can have a lasting positive impact on company performance (Aftab et al., 2024). This theory aims to observe and monitor the organization's actions in order to achieve the objectives of stakeholders, such as the media, governments, and society (Donaldson and Preston, 1995). Based on Freeman's (1984) assumption, stakeholder theory argues that organizations' activities should consider internal and external stakeholders, such as investors, shareholders, customers, employees, suppliers, management, community, environment and the State, in their actions.

Stakeholder theory has largely served as the primary platform for investigating the effect of corporate social responsibility (CSR) on financial performance and firm value (Budsaratragoon and Jitmaneeroj, 2021). This theory has been a key framework for exploring the impact of CSR on financial performance and firm value. Advocates of this theory contend that companies should adopt socially responsible practices, such as energy conservation and pollution reduction, which can drive value creation by enhancing productivity, improving corporate reputation and expanding market share (Ting et al., 2019). However, stakeholders are increasingly interested in issues associated with environmental, social and management risk, such as ESG indicators (Aydoğmuş et al., 2022).

Broccardo and Mauro (2024) suggest that the implementation of sustainable strategies, such as ESG performance, aims to respond to stakeholder expectations. This is because there is pressure to integrate sustainability with business, requiring companies to adopt stronger accountability tools and transparent information on social and environmental issues. From this perspective, stakeholders and the organization are interdependent, which directly affects the strategy formulation process, as it allows managers to incorporate values and principles in order to provide temporary stability to relationships with stakeholders (Goes et al., 2021).

Sustainability reports are increasingly being disclosed by organizations as stakeholders demand greater transparency on ESG issues (Buallay, 2019). Environmental protection measures, social responsibility and the state of governance of companies are directly related to ESG assessment and contribute to increasing corporate value (Wu et al., 2022). Khan et al. (2015) report that companies with strong sustainable performance tend to have greater potential for future financial performance. On the other hand, when a company has lower ESG performance, the company consequently has greater market risk, decreasing market value (Pinheiro et al., 2024c).

According to stakeholder theory, companies are more likely to invest in improving their ESG performance in order to enhance stakeholder perception and social reputation. This, in turn, helps them grow and strengthen their financial performance (Naeem et al., 2022). For example, by investing in technological innovation related to pollution control, companies can improve their production efficiency, enhancing the competitiveness of their products and increasing their market value (Zhou et al., 2022). Ting et al. (2019) observed that companies with an innovative strategy to reduce environmental costs and create new market opportunities through new environmental technologies or products with eco-design showed high share valuation on the stock exchange.

While most studies suggest a positive relationship between ESG performance and market value in developed countries, this relationship remains unclear in emerging markets (Fatemi et al., 2018; Ting et al., 2019; Velte, 2017). Deng and Cheng (2019) noted that companies' ESG performance can significantly improve the stock market, providing a beneficial relationship between social value and business development. ESG practices can be important for greater operational efficiency and profitability, which will help the organization to have more capital to reinvest in environmental issues, reducing risks, improving credibility, market competitiveness and generating consumer and investor confidence (Wu et al., 2022). Therefore, the following research hypothesis is proposed:

Stakeholder engagement is seen as the quality of the relationship between companies and stakeholders. In this sense, the involvement of these parties can have a positive effect on establishing financial and non-financial strategies (Stocker et al., 2020). Companies that communicate well with all their stakeholders and disclose more ESG information provide high levels of trust to society. Therefore, transparency of information is a commitment of the company to its stakeholders (Wasiuzzaman and Wan Mohammad, 2020). Stakeholder theory proposes to analyze the relationships between a company and its stakeholders, aiming to bring corporate interests and stakeholders' interests closer together (Attanasio et al., 2022).

Kujala et al. (2022) state that an organization's strategic objectives should influence the stakeholders involved to improve the company's value creation and reputation, since strategic activities lead to impacts to strengthen the company's performance. In this vein, the implementation of sustainability strategies is stimulated by the need to respond to stakeholders' requests and expectations (Broccardo and Mauro, 2024). Adomako and Tran (2022) identified that in Ghana stakeholder pressure significantly influences environmental collaboration at the level of responsible innovation, which, in turn, leads to improved financial performance.

Stakeholders have increasingly considered non-financial information in their decision-making, as well as ESG criteria that can help create long-term value, as organizations with better ESG performance tend to have higher share prices (Santos and Tavares, 2023). Based on these previous studies, it is expected that stakeholder engagement can contribute to companies with higher ESG having a higher market value. Therefore, the following research hypothesis is raised:

The sample of companies was composed of companies headquartered in Mexico, Indonesia, Nigeria and Turkey, with information taken from the Refinitiv Eikon database. The time frame of this research corresponds to five years, from 2017 to 2021. This time frame was chosen for two reasons: I) In 2015, companies committed to the UN Global Compact to increase transparency and sustainability commitment (Mallidis et al., 2024). Thus, from 2015 onwards, companies increased the disclosure of reports that demonstrate the results and sustainable actions developed by them; II) 2021 was the year with the most recent information available when the data was collected. The study period spans from 2017 to 2021, which allows us to capture recent developments in ESG practices but also constrains the analysis of their long-term effects on firm value.

The sample includes 138 companies, with the country with the largest representation being Turkey with 50 companies, corresponding to 36.23%, followed by Indonesia with 44 companies, corresponding to 31.88% of the sample, Mexico with 43 companies, corresponding to 31.16% of the sample, and Nigeria with one company, corresponding to 0.72% of the sample. Given the underrepresentation of Nigeria, the findings should be interpreted with caution when generalizing to the full MINT group. Table 1 presents the segmentation of companies by country and industry.

According to Table 1, the sample is divided into 10 sectors of the economy: cyclical consumption, non-cyclical consumption, energy, real estate, industrial, basic materials, health services, public utilities, finance and technology. The finance sector has the largest representation in the sample with 27 companies, which corresponds to 19.56% of the total sample. However, the public utilities sector has only two companies, representing 1.45% of the sample of companies observed.

Table 2 presents the description of the variables selected for the study. The dependent variable is the market value of the company. This variable is measured by Tobin's Q, which is the ratio between the company's capital and cost (Butt et al., 2023). Tobin's Q relates to the market's assessment of the ability to generate profitability for the shareholder on the replacement cost of the assets approximated by the market value and the debt between the accounting value of the assets (Miralles-Quirós et al., 2019). This metric determines whether a company is overvalued or undervalued (Aydoğmuş et al., 2022). Tobin's Q is an appropriate measure for analyzing the market value and valuation effects of the observable and unobservable aspects of the relationship between the company and its stakeholders (Ting et al., 2019).

The independent variable represents the ESG performance in the organization in order to verify whether the ESG performance of listed companies will affect the market value of the company (Aydoğmuş et al., 2022). This variable was collected from the Refinitiv Eikon database and is an overall company score based on self-reported information in the environmental, social and corporate governance pillars. The moderating variable stakeholder engagement (STAKENG) was used to investigate whether, with stakeholder involvement, ESG practices have a greater effect on the market value of companies. This variable has already been used in other studies (Esposito et al., 2024; García-Sánchez et al., 2022; Pucheta-Martínez et al., 2020) and represents how the company engages with its stakeholders and complies with regulations, resolutions or proposals regarding environmental practices.

The control variables sought to control factors that may influence the market value of companies. Previous studies (Aydoğmuş et al., 2022; Zhou et al., 2022) have shown that return on assets (ROA), company size (SIZE) and financial leverage (LEVERAGE) can influence company value. ROA, company size and financial leverage can enhance improvements in financial performance.

In addition, the company's sector (SECTOR) can be an impacting factor on market value (Budsaratragoon and Jitmaneeroj, 2021). Finally, a control variable was used to identify the institutional level (ECOFREE), since this research investigates an international sample and, therefore, it is necessary to analyze the institutional effect on company behavior (Pucheta-Martínez et al., 2020). The inclusion of an institutional variable is another unique aspect of this study, as most research typically focuses solely on organizational-level variables.

Since the data collected correspond to five years (2017–2021), the panel estimation technique was used. According to Graafland (2019), panel data analysis is the most effective method to use when the data has both cross-sectional and time series dimensions. The same cross-sectional unit (company) is studied over time (years) (Hair et al., 2019). Thus, the data are organized both in space and time. The econometric model that projects the market value is demonstrated in the formula below:

The operationalized panel data regression is of the unbalanced type; that is, not all companies (1) have the same amount of data over time (t). Autocorrelation and heteroscedasticity were verified using the value inflation factor (VIF) and the Breusch-Pagan test, respectively (Hair et al., 2019). These problems were not found in the sample. However, to strengthen the research results, additional tests were performed to avoid endogenous variables in the regression.

For the asymmetric analysis, the fuzzy-set Qualitative Comparative Analysis technique was used to explore the possible configurations of the explanatory variables that drive a higher market value of companies. The use of this method followed the following steps: I) data calibration, i.e., the variables were transformed into fuzzy sets, II) simplification of multiple solutions, III) analysis of the truth table and IV) interpretation of the parsimonious solution (Ragin, 1987).

In addition to panel data regression analysis, an asymmetric analysis was conducted using the fuzzy set qualitative comparative analysis (fsQCA) technique. fsQCA enables a more complete understanding of the conditions that contribute to the outcomes, as it can identify hidden patterns and complex configurations that are difficult to observe using linear methods alone. The purpose of fsQCA in this study is to uncover mechanisms that enhance firm value and suggest potential pathways for companies in the analyzed countries to follow.

Table 3 reports the results of the main descriptive statistics (mean, first quartile – 25%, standard deviation, third quartile – 75%, minimum and maximum) of the variables used in the econometric models. As can be seen, the market value has an average of 9.47, with a minimum of 6.62 and a maximum of 10.88, a Q1 equal to 9.10 and a Q3 equal to 9.83.

Regarding the independent variable, ESG has an average of 55.81, a standard deviation of 21.93, a Q1 equal to 39.52 and a Q3 equal to 72.52. The company with the highest ESG performance has 94.16 points, and the company with the lowest ESG has 1.70 points. Regarding the moderating variable, stakeholder engagement has an average of 0.78, a standard deviation of 0.41, a Q1 equal to 1 and a Q3 equal to 1. Regarding the control variables, the data reveal that the average ROA is 0.07, LEVERAGE has an average value of 0.28, SIZE is 9.71, SECTOR is 0.34 and institutional quality is 64.84, which indicates the heterogeneity of the companies in the sample. 34% of the companies operate in environmentally sensitive sectors.

Table 4 presents the correlation matrix between the variables. This matrix is crucial, since statistical problems arising from collinearity can manifest themselves when there is a bivariate correlation of 0.90 or higher between the explanatory variables (Hair et al., 2019).

The data show that the variable measuring market value does not have strong and significant correlations with the explanatory variables. Furthermore, the correlation coefficients between the explanatory variables are considered low (Hair et al., 2019). Overall, the analysis of the coefficients reveals that there is no evidence of collinearity problems in the data. However, to confirm this, we performed the VIF test for each model.

Table 5 presents the results of the fixed-effects panel regression models without the presence of the moderating variable. After conducting the Hausman test, the fixed-effects panel model proved to be more appropriate. The findings show that ESG has a positive and significant effect on market value. This finding indicates that companies committed to ESG tend to have a higher market value, since ESG activities increase investor confidence. Because of the small Nigerian subsample, the results primarily reflect the patterns observed in Turkey, Indonesia and Mexico. Besides that, our findings capture only one dimension of market value and should be complemented in future studies by additional metrics such as market capitalization, stock returns, or profitability ratios.

Regarding the control variables, the data reveal that ROA, company size (SIZE) and ECOFREE have a positive and significant effect on the dependent variable in practically all models. The control variable LEVERAGE has a negative and significant effect in models 1, 2 and 4 and a negative but non-significant effect in model 3. Finally, the variable SECTOR had no significance on market value.

The results of the control variables allow us to identify that a company's profitability has a positive effect on market value. Larger companies, in general, are more attractive to investors since they have the capacity to grow. It is also possible to identify that the economic freedom variable has a positive relationship with market value. In other words, companies headquartered in countries with greater economic freedom present a favorable scenario for the creation of corporate value, since economic freedom in a country is related to sources of productivity and income (Graafland, 2019).

Table 6 presents the results of the fixed-effects panel regression models with the presence of the moderating variable. The findings showed that stakeholder engagement negatively influences market value. However, when stakeholder engagement occurs in companies that present ESG initiatives, the influence becomes positive on market value. Therefore, to have a higher market value, stakeholder engagement alone is not enough if the company does not have ESG practices.

Regarding the independent variable, the results reveal that ESG with the presence of the moderating variable has a negative and non-significant effect. When observing the relationship between the moderating variable (stakeholder engagement) and market value in isolation, a negative and significant relationship is observed in almost all models. However, when the moderating variable stakeholder engagement is aligned with ESG practices (STAESG), a positive and significant relationship is observed. In this context, it is understood that the presence of stakeholder engagement in companies that have active ESG activities can positively moderate the relationship between ESG and market value.

Therefore, in companies that do not have ESG practices, stakeholder engagement alone cannot generate a higher market value. Regarding the control variables, the data reveal that ROA, TAMEMP and ECOFREE have a positive and significant effect on market value in practically all models. The control variable LEVERAGE has a positive and significant effect on market value in practically all models. However, the variable SECTOR had no significance on market value. These results of the control variables present findings similar to those in Table 5.

In addition to panel data analysis, an asymmetric analysis was conducted using the fsQCA technique. fsQCA analysis allows a more complete understanding of the conditions that contribute to the results, since it is possible to identify hidden patterns that are difficult to observe (Vis, 2012).

This approach allows us to verify how different stakeholder engagement actions are aligned with the company's performance in relation to different institutional and business-level conditions (Gupta et al., 2020). The purpose of fsQCA is to identify mechanisms that enhance company value and provide potential pathways for companies in the analyzed countries to follow. The results of this analysis are presented in Table 7.

The fsQCA results presented in Table 7 identify multiple configurations of conditions associated with high levels of market value (MKTVL). Across the four paths, ESG performance consistently appears as a core causal condition, either present or absent, highlighting its central role in enhancing firm value. Other conditions, such as firm size, leverage, ROA, sector, stakeholder engagement and economic freedom, combine differently across paths, illustrating that multiple causal pathways can lead to similar outcomes.

For instance, Path 1 shows that the absence of ESG and economic freedom combined with smaller firm size and ROA constitutes a configuration sufficient for high market value, whereas Path 3 indicates that the presence of ESG and ROA, along with smaller firm size, can also achieve the same outcome. These findings demonstrate the equifinality principle in fsQCA, where different combinations of conditions produce similar results. Importantly, the fsQCA results complement the panel regression analysis by revealing complex interactions and causal patterns that linear models cannot detect, thereby providing a richer understanding of the mechanisms linking ESG, stakeholder engagement and firm value.

The findings of this research allow us to confirm Hypothesis 1 and Hypothesis 2. The results demonstrate that ESG performance has a positive and significant effect on the market value of companies, confirming Hypothesis 1. Previous studies have found similar results in developed economies (Fatemi et al., 2018; Pinheiro et al., 2024c; Ting et al., 2019; Velte, 2017). Companies that adopt robust ESG strategies tend to improve their market value, as these practices indicate better preparation to manage ESG risks, in addition to the fact that companies operate sustainably and in accordance with local laws (Budsaratragoon and Jitmaneeroj, 2021).

Additionally, companies with high ESG performance are more likely to be recognized in the market, which generates greater trust on the part of consumers and investors, thus increasing their credibility, competitiveness and their market value (Wu et al., 2022). The study by Maaloul et al. (2023) showed that in addition to increasing market value, ESG practices increase corporate reputation.

The findings showed that the presence of stakeholder engagement when aligned with ESG practices offers greater market value for companies, thus confirming Hypothesis 2. According to Broccardo e Mauro (2024), the success of a sustainable business is often driven by pressure from external stakeholders who demand stricter accountability mechanisms and greater transparency in information (Attanasio et al., 2022). Thus, stakeholder pressure is pivotal in strengthening the relationship between ESG performance and market value.

This study reveals that ESG practices are more effective in improving market value when there is greater engagement with stakeholders. Therefore, it is necessary for companies in MINT countries to develop ESG strategies aligned with their stakeholders in order to generate a financial benefit, that is, a higher market value. Therefore, this research highlights that companies that wish to have a higher market value must develop ESG strategies to meet the needs of each of their stakeholders. To have a higher market value, stakeholder engagement is not enough in isolation if the company does not have ESG practices. This is in line with Argento et al. (2022), who state that the implementation of ESG strategies needs to be linked to clear communication and shared understanding with different stakeholders.

Regarding the control variables, the study shows that higher financial performance increases market value, which has already been proven in previous studies (Aydoğmuş et al., 2022; Zhou et al., 2022). This finding adds fresh evidence that in emerging contexts, larger and more profitable companies tend to have higher market value. The results also emphasize that higher economic freedom at the institutional level positively impacts the market value of companies. Economic freedom can foster managerial innovation and the adoption of new technologies, offering companies more cost-effective solutions to enhance their market value (Graafland, 2019).

Overall, the findings allow us to identify the importance of efficiently conducting ESG practices in companies, since engagement and communication with stakeholders are being recognized as essential components of sustainability reporting (Broccardo and Mauro, 2024). Furthermore, companies should continue to explore the viability of investment strategies based on ESG performance (Zhou et al., 2022). Given this, the study may suggest that companies headquartered in MINT countries that engage in ESG practices tend to increase their financial performance. These findings reaffirm the stakeholder theory, as companies should consider the influence of stakeholders in their organizational strategies (Attanasio et al., 2022).

In theoretical terms, this study supports stakeholder theory by highlighting the importance of relationships between companies and their stakeholders for financial performance. From this perspective, companies are open organizations that must understand the needs of their investors and other stakeholders to achieve superior financial outcomes. By considering the needs of various internal and external stakeholders—such as NGOs, employees, customers, suppliers, the media and government—companies can create value for their investors. Building strong relationships with these stakeholders helps develop ESG practices that are tailored to each group, ultimately enhancing market value.

In emerging markets like the MINT group, environmental legislation can be more flexible, often leading companies to adopt less responsible practices. In these markets, stakeholder pressure is crucial for encouraging companies to not only comply with existing regulations but also to enhance their ESG practices, driving greater market value.

In practical terms, managers should recognize that investing in ESG practices can lead to improved financial performance, as ESG performance is a key driver of market value for companies in MINT countries. While ESG disclosure is not mandatory in the countries analyzed, governments can create incentives to encourage companies to prioritize such disclosures. For instance, governments could offer annual bonuses or tax reductions to companies that actively engage in environmental and social initiatives, thereby promoting greater emphasis on ESG practices.

The results of this research can also be valuable for investors, allowing them to incorporate ESG information and ratings into their investment strategies. By leveraging the insights from ESG ratings, investors can select companies that demonstrate responsible behavior, potentially enhancing the performance of their portfolios while reducing risks and stabilizing financial returns.

Based on stakeholder theory, this research aimed to examine the moderating effect of stakeholder engagement on the relationship between ESG performance and market value in companies located in MINT countries. To achieve this, data were collected from the Refinitiv Eikon® database, and panel data regression with fixed effects was employed for the analysis, using a dataset of 558 observations. Additionally, an asymmetric fsQCA analysis was conducted to further explore the findings.

After analyzing the data, the results lead to the conclusion that market value is influenced by ESG performance. Companies seeking to achieve higher market value should, therefore, invest in environmental, social and governance practices. The findings also confirm that stakeholder engagement positively moderates the relationship between ESG performance and market value. In other words, when a company practicing ESG is actively engaged with its stakeholders, its market value tends to be even higher. By confirming Hypotheses 1 and 2, these findings offer significant theoretical and practical contributions, as outlined in the previous section.

This study is not without limitations. A first concerns the operationalization of stakeholder engagement, which was measured through a dummy variable. While this simplified proxy follows prior research and ensures cross-country comparability, it does not fully capture the intensity, quality, or scope of firm–stakeholder interactions. Future studies should employ richer indicators, such as survey-based measures, textual analysis, or multi-dimensional indices, to provide a more nuanced understanding. A second limitation relates to the reliance on Tobin's Q as the sole measure of firm value. Although widely adopted in the ESG–performance literature, this metric captures only one dimension of market value. Further research could complement this approach with alternative indicators such as market capitalization, stock returns, or profitability ratios.

Finally, the institutional environment was represented only through the index of economic freedom, which provides a partial perspective of the complexity of emerging markets. Incorporating additional institutional dimensions, such as corruption, governance quality and political stability, would strengthen explanatory power. Besides that, a key limitation of this study concerns the unbalanced representation of the MINT countries, particularly the inclusion of only one Nigerian firm. Despite these limitations, this study contributes to the literature by offering an initial step in examining how ESG performance, stakeholder engagement and institutional conditions interact to shape firm value in MINT countries, and we hope it stimulates further longitudinal and comparative investigations.

Therefore, future research should aim to address the gaps left by this study. For instance, introducing additional variables to better capture the institutional environment or using alternative proxies for market value would be valuable. Additionally, future studies could analyze other groups of emerging countries, such as the BRICS and BENIVM groups, to provide a comparative analysis with the findings of this research. This would help to enrich the understanding of ESG performance and its impact across different emerging market contexts. Future research should extend the analysis to longer periods beyond 2021 in order to better assess post-pandemic developments and the persistence of ESG effects.

We sincerely thank the anonymous reviewers for their valuable observations, constructive criticism, and detailed suggestions. Their feedback has significantly contributed to improving the quality and clarity of this work. The authors are also grateful for the financial support provided by CAPES (Coordenaçao de Aperfeiçoamento de Pessoal de Nível Superior - Brazil).