Impact of global financial crisis on firm performance in UK: Moderating role of ESG, corporate governance and firm size

This paper investigates the impact of global financial crisis (GFC; 2007–10) on financial and non-financial performance of FTSE350 UK firms. This study tests the relationships among GFC, firm financial performance and environmental, social and governance (ESG; for non-financial performance) and esti...

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Main Authors: Nisar Ahmad, Asma Mobarek, Moodhi Raid
Format: Article
Language:English
Published: Taylor & Francis Group 2023-12-01
Series:Cogent Business & Management
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/23311975.2023.2167548
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author Nisar Ahmad
Asma Mobarek
Moodhi Raid
author_facet Nisar Ahmad
Asma Mobarek
Moodhi Raid
author_sort Nisar Ahmad
collection DOAJ
description This paper investigates the impact of global financial crisis (GFC; 2007–10) on financial and non-financial performance of FTSE350 UK firms. This study tests the relationships among GFC, firm financial performance and environmental, social and governance (ESG; for non-financial performance) and estimates the moderating role of ESG, corporate governance (CG) and firm size in these relationships. Panel data from 2002 to 2018 across 351 UK firms are used. For estimation, random effect model is found suitable to investigate the relationship between financial crisis and firm performance (financial performance as well as ESG performance). The results explain that financial as well as ESG performance of the firm declined during the financial crisis period. Firm size is a moderator in the relationship of financial crisis and ESG performance of the firm. Further findings of the study explain that ESG, firm size and CG are the moderators in the relationship of GFC and firm financial performance. The results of the study are data based and can be used for policy implications. Firms can employ ESG, CG and firm size as strategy tools to enhance their performance especially during the financial crisis periods.
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spelling doaj-art-4e5e7646d67b4dff89fb8a0af838f09e2025-08-20T03:03:21ZengTaylor & Francis GroupCogent Business & Management2331-19752023-12-0110110.1080/23311975.2023.2167548Impact of global financial crisis on firm performance in UK: Moderating role of ESG, corporate governance and firm sizeNisar Ahmad0Asma Mobarek1Moodhi Raid2Department of Economics, University of Sargodha, Sargodha, PakistanEconomics Section Cardiff Business School, UKDepartment of Economics, Arab Open University, Saudi ArabiaThis paper investigates the impact of global financial crisis (GFC; 2007–10) on financial and non-financial performance of FTSE350 UK firms. This study tests the relationships among GFC, firm financial performance and environmental, social and governance (ESG; for non-financial performance) and estimates the moderating role of ESG, corporate governance (CG) and firm size in these relationships. Panel data from 2002 to 2018 across 351 UK firms are used. For estimation, random effect model is found suitable to investigate the relationship between financial crisis and firm performance (financial performance as well as ESG performance). The results explain that financial as well as ESG performance of the firm declined during the financial crisis period. Firm size is a moderator in the relationship of financial crisis and ESG performance of the firm. Further findings of the study explain that ESG, firm size and CG are the moderators in the relationship of GFC and firm financial performance. The results of the study are data based and can be used for policy implications. Firms can employ ESG, CG and firm size as strategy tools to enhance their performance especially during the financial crisis periods.https://www.tandfonline.com/doi/10.1080/23311975.2023.2167548global financial crisisfirm financial performanceESG performance of firmfirm size and FTSE350 firmsE63E65.
spellingShingle Nisar Ahmad
Asma Mobarek
Moodhi Raid
Impact of global financial crisis on firm performance in UK: Moderating role of ESG, corporate governance and firm size
Cogent Business & Management
global financial crisis
firm financial performance
ESG performance of firm
firm size and FTSE350 firms
E63
E65.
title Impact of global financial crisis on firm performance in UK: Moderating role of ESG, corporate governance and firm size
title_full Impact of global financial crisis on firm performance in UK: Moderating role of ESG, corporate governance and firm size
title_fullStr Impact of global financial crisis on firm performance in UK: Moderating role of ESG, corporate governance and firm size
title_full_unstemmed Impact of global financial crisis on firm performance in UK: Moderating role of ESG, corporate governance and firm size
title_short Impact of global financial crisis on firm performance in UK: Moderating role of ESG, corporate governance and firm size
title_sort impact of global financial crisis on firm performance in uk moderating role of esg corporate governance and firm size
topic global financial crisis
firm financial performance
ESG performance of firm
firm size and FTSE350 firms
E63
E65.
url https://www.tandfonline.com/doi/10.1080/23311975.2023.2167548
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AT asmamobarek impactofglobalfinancialcrisisonfirmperformanceinukmoderatingroleofesgcorporategovernanceandfirmsize
AT moodhiraid impactofglobalfinancialcrisisonfirmperformanceinukmoderatingroleofesgcorporategovernanceandfirmsize