CSR Performance and Firm Value: A Case Study from the S&P 500

Maya Katenova, Peter Schmunkamp

Journal of Sustainability, 2026

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DOI 10.55845/jos-2026-21137
Data confidence 70 medium
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Abstract

This paper examines the association between CSR engagement and both firm value and goodwill. The sample data covers 497 firms from the S&P 500 Index. The period under review is from 2007 to 2021. This period was selected because it encompasses two major episodes of market disruption — the 2007–2009 global financial crisis and the COVID-19 pandemic — providing an empirically rich setting for assessing the resilience and valuation relevance of ESG performance across varying macroeconomic conditions. The findings carry implications for investors, suggesting that firms with strong ESG profiles may offer superior long-term value prospects. We use IV-GMM, with firm value as the dependent variable. In this study, the effect of CSR performance, represented by the ESG score, on the firm value is examined. The S&P 500 dataset provides an ideal empirical setting for examining this relationship, given its breadth, international relevance, and data quality. Our findings suggest that the overall ESG combined score is positively and significantly associated with firm value. Moreover, the ESG score has positive relationships with firm goodwill. Several unexpected findings also emerge, which are examined in detail in the empirical results section. Findings suggest that stronger ESG performance is associated with greater firm value and goodwill. The study provides a foundation for future inquiry into the long-term valuation consequences of corporate sustainability engagement.