Unraveling the ESG-firm value nexus: A systematic analysis of current literature and emerging themes

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Abstract

This study conducts a systematic literature review, bibliometric analysis, and content analysis to investigate the relationships between environmental, social, and governance (ESG) performance and firm value. Using Scopus and Web of Science (WoS) databases, 287 relevant articles published between 2015 and 2024 were identified. This research uses VOSviewer and the Bibliometrix-R package for analysis, examining annual trends, influential authors, journals, organizations, collaborations, and future research areas. ESG firm performance studies increased significantly from 2022 onwards. This study corroborates existing evidence indicating that most research finds a positive relationship between ESG performance and firm value. However, some studies report negative or insignificant results, likely due to variations across industries, regions, and time periods (Ghinizzini et al., 2025). This study reveals a lack of standardized ESG ratings, the need to separate E, S, and G components, and the importance of advanced causal methods for endogeneity issues. Bibliographic coupling identifies three research clusters: empirical findings on ESG and firm value relationships, qualitative and meta-analytic studies, and theoretical works. Future research should expand cross-country and industry comparisons, investigate ESG risk-mitigation aspects, and incorporate multiple theoretical frameworks. This analysis provides insights for scholars, policymakers, and professionals, emphasizing the need for consistent ESG regulations and aligning strategies with practices to enhance market values.

Keywords: ESG Performance, Financial Performance, Corporate Sustainability, Bibliometric Analysis, ESG Disclosure

Authors’ individual contribution: Conceptualization — A.P. and S.M.; Methodology — A.P.; Formal Analysis — A.P.; Writing — A.P.; Visualization — A.P. and S.M.; Supervision — S.M.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G30, G34, G64, Q56

Received: 29.04.2025
Revised: 05.09.2025; 09.10.2025
Accepted: 04.11.2025
Published online: 06.11.2025

How to cite this paper: Patekar, A., & Mahajan, S. (2025). Unraveling the ESG-firm value nexus: A systematic analysis of current literature and emerging themes. Business Performance Review, 3(2), 49–65. https://doi.org/10.22495/bprv3i2p5