How ESG Practices Affect Business Success in Korea and Taiwan

In today's business world, Environmental, Social, and Governance (ESG) practices are a hot topic. This study dives into how these practices impact business performance in Korea and Taiwan. Both countries are similar in size, but their ESG strategies and outcomes vary greatly. The research looked at 113 companies from each country, using a measure called Tobin's q ratio to gauge performance. The results? It's complicated. South Korea, with strong government policies and big corporations, sees different effects than Taiwan, where small and medium-sized enterprises (SMEs) dominate.These differences highlight how internal factors play a big role in performance. This study adds to our understanding of ESG and business success, offering valuable insights for investors, managers, and policymakers in the Asia-Pacific region. It suggests that tailoring ESG strategies to each market's unique environment, economic structure, and internal factors is key for sustainable growth and staying competitive.