Edeigba, Jude, Tawiah, Vincent
ORCID: 0000-0003-1679-387X and Opare, Solomon
(2026)
Firms’ human rights practices: impacts on firms’ ESG and financial performance.
Pacific Accounting Review, 38
(2).
pp. 447-470.
ISSN 0114-0582
Abstract
Purpose
This paper aims to examine the relationship between human rights practices and firm market and financial performance and the moderating role of Environmental, Social and Governance (ESG) practices.
Design/methodology/approach
The authors use ordinary least squares regression as a baseline methodology on US-listed firms from 2002 to 2023 and generalized method of moments estimation to account for endogeneity concerns.
Findings
The results indicate that firms’ human rights practices are significantly associated with market performance and return on assets. Additionally, ESG practices significantly moderate the relationship between human rights practices and firm performance. Human rights performance has a greater impact on market performance when moderated by ESG practices.
Research limitations/implications
This study contributes to the academic discourse by exploring the complex relationship between human rights and ESG performance. Identifying human rights practices as a social cost has intrinsic value for firms, driving toward desirable levels of human rights practices within corporate governance systems, consistent with stakeholder and social exchange theories.
Originality/value
This study provides novel insights into the interactive effects of human rights and ESG factors on firms’ market and financial performance, offering a deeper understanding of how these elements collectively shape corporate outcomes.
Metadata
| Item Type: | Article (Published) |
|---|---|
| Refereed: | Yes |
| Uncontrolled Keywords: | ESG, Firm performance, Human rights, Sustainable Development Goals |
| Subjects: | Business > Accounting |
| DCU Faculties and Centres: | DCU Faculties and Schools > DCU Business School |
| Publisher: | Emerald |
| Official URL: | https://www.emerald.com/par/article/38/2/447/13428... |
| Copyright Information: | Authors |
| ID Code: | 33031 |
| Deposited On: | 23 Jul 2026 13:26 by Tam Nguyen . Last Modified 23 Jul 2026 13:26 |
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