This paper investigates the relationship between Environmental, Social, and Governance (ESG) controversies and firm performance, examining the moderating influences of corporate governance structures and ESG practices. Utilizing quantitative methods, we analyze data from 5360 firm‐year observations. Our findings reveal a significant negative relation between ESG controversies and firm performance. However, well‐defined corporate governance frameworks and internal ESG strategies mitigate these adverse impacts and can transform these controversies into growth opportunities and reputation enhancement. A comparative analysis involving the United Kingdom and other European Union nations highlights the influence of geographical and regulatory contexts in shaping this dynamic. These results offer valuable insights for policymakers, corporate strategists, and investors, emphasizing the role of governance in navigating ESG controversies and enhancing firm resilience and adaptability. The study contributes to the sustainability field by providing a nuanced understanding of the interaction between ESG controversies, corporate governance, and firm performance.

中文翻译：

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ESG争议与企业绩效：治理机制和ESG实践的调节作用

本文研究了环境、社会和治理 (ESG) 争议与公司绩效之间的关系，探讨了公司治理结构和 ESG 实践的调节影响。我们利用定量方法分析了 5360 个公司年度观察的数据。我们的研究结果揭示了 ESG 争议与公司绩效之间存在显着的负相关关系。然而，明确的公司治理框架和内部 ESG 策略可以减轻这些不利影响，并可以将这些争议转化为增长机会和声誉提升。一项涉及英国和其他欧盟国家的比较分析强调了地理和监管环境对形成这种动态的影响。这些结果为政策制定者、企业战略家和投资者提供了宝贵的见解，强调了治理在解决 ESG 争议和增强公司弹性和适应性方面的作用。该研究通过提供对 ESG 争议、公司治理和公司绩效之间相互作用的细致了解，为可持续发展领域做出了贡献。