ESG media buzz and firm performance: the moderating effect of firms’ strategic emphasis

While firms increasingly invest in Environmental, Social, and Governance (ESG) initiatives, stakeholders’ awareness of these efforts depends largely on external communication. Prior research focuses on the performance implications of ESG practices themselves, overlooking the role of ESG-related media visibility. This study examines how ESG media buzz links to firm value and risk. Analysing publicly listed US food and beverage firms, the results reveal an inverted U-shaped relationship between ESG media buzz and firm value, which weakens when firms strategically prioritise value appropriation over value creation. Additionally, ESG media buzz exhibits a U-shaped relationship with firm risk. These findings highlight the strategic importance of understanding externally mediated ESG visibility and its interpretation in capital markets.