How ESG Influence Firm Performance Facing Economic Crisis*：Evidence from COVID－19

[Purpose]This study investigates the relationship between ESG (Environmental, Social, and Governance) performance and corporate financial outcomes during economic crises, using the COVID 19 pandemic as a key inflection point. [Methodology]Focusing on publicly listed firms in South Korea between 2015 and 2024, the study evaluates whether improvements in ESG scores following the pandemic translated into better financial performance, measured through Return on Assets (ROA). [Findings]The findings reveal a significant post pandemic increase in ESG scores, particularly in the social and governance dimensions, indicating that firms intensified their sustainability practices in response to crisis induced pressures. However, regression analyses suggest that ESG performance does not exert a statistically significant direct impact on short term financial indicators such as ROA. Instead, firm level characteristics such as size, leverage, ownership concentration, and prior losses emerged as more consistent predictors of profitability. [Implications]These results contribute to the broader literature on ESG and financial resilience by demonstrating that ESG initiatives may not yield immediate profitability but can support firms’ strategic positioning and long term adaptability. ESG adoption, especially during periods of crisis, may be better understood as a commitment to long term value creation rather than a short term financial driver.