RT info:eu-repo/semantics/article
T1 Business diversification and ESG engagement: Riding tandem to risk reduction and value creation?
A1 Fuente Herrero, Gabriel de la
A1 Ortiz Almeyda, Margarita
A1 Velasco González, María Del Pilar
K1 Corporate diversification
K1 ESG
K1 Corporate social responsibility
K1 Corporate risk management
K1 Firm value
K1 53 Ciencias Económicas
AB We examine the overlap between business diversification and environmental, social, and governance (ESG) engagement as two corporate risk management strategies, and theorise the underlying mechanisms of their interaction effect on firm value. Drawing on agency and stakeholder theories, we test our hypotheses using a sample of U.S. firms (2009–2019). Our findings indicate that ESG engagement mitigates the diversification discount. Further, ESG engagement reduces systematic risk, while diversification reduces idiosyncratic risk. However, we find no evidence supporting for the mediating role of total risk in the relationship between these strategies’ interaction and firm value. This suggests the need to explore alternative channels that may produce complementarities between these strategies.
PB Elsevier
SN 0148-2963
YR 2025
FD 2025-11
LK https://uvadoc.uva.es/handle/10324/77723
UL https://uvadoc.uva.es/handle/10324/77723
LA eng
NO Journal of Business Research, Noviembre 2025, vol. 200, 115676
NO Producción Científica
DS UVaDOC
RD 03-oct-2025