Do All ESG Dimensions Matter Equally? Evidence from Taiwanese Financial Holding Companies

Abstract

This study examines the relationship between ESG performance and firm value using a sample of 13 Taiwanese financial holding companies over the period 2016–2025. Firm value is measured by Tobin's Q, while ESG performance is measured using the Taiwan ESG (TESG) rating. A series of pooled ordinary least squares (OLS) regression models is employed to examine the effects of overall ESG performance and its individual Environmental (E), Social (S), and Governance (G) dimensions. The results indicate that overall ESG performance is positively associated with firm value. Among the individual ESG dimensions, the Social dimension exhibits the most robust positive association with firm value and remains statistically significant after accounting for within-firm correlation. These findings highlight the importance of evaluating ESG as a multidimensional construct rather than relying solely on an aggregate ESG score. JEL classification numbers: G32. Keywords: ESG performance, Environmental, Social, Governance, Financial holding companies.