The debate on the financial repercussions of firms’ Corporate Social Responsibility (CSR) and Environmental, Social, and Governance (ESG) performance has been continuing over the last 40 years.
The relationship between ESG engagement and corporate investment efficiency. There are two competing perspectives related to the impact of ESG/CSR on investment efficiency. CSR activities can generate conflict between stakeholders. The managerial opportunism hypothesis suggests that agency problems could lead firms to overinvest in CSR.
