<scp>Environmental, social, and governance</scp> activities and firm performance: Global evidence and the moderating effect of market competition

Despite the growing demand for corporate environmental, social, and governance (ESG) engagement in response to global complex crisis, impacts of ESG activities market environment on firm performance have not been sufficiently investigated. This study aims explore how affect competitive moderates this relationship. The panel data regression analysis was performed investigate relationship between (specifically, capitalization as a measure market-based profit margin return assets measures account-based performance) with 2115 listed companies from 53 countries over past 5 years (2017–2021). results showed U-shaped relation capitalization, positive linear observed or assets. Importantly, it found that these relationships are negatively moderated by competition (number competitors) market. It can be interpreted greater number competitors market, weaker effect performance. discusses plausible reasons observations managerial policy implications drawn results. only analyzes various aspects at level, but also accumulates new evidence moderating competition.