R&D Investment and Corporate Sustainability: Evidence from ICT Firms Listed in Korean Capital Markets

This study examines the association between R&D expenditure, an input-based proxy for technological innovation activity (TIA), and ESG ratings among Korean listed ICT firms. The full sample comprises 501 firm-year observations from 122 firms over 2012–2024. A parsimonious pooled OLS analysis relates current ESG to TIA lagged by one calendar year, using 350 observations from 97 firms over 2013–2024. Lagged TIA is positively associated with overall ESG (coefficient = 0.2324; firm-clustered p = 0.0283). Dimension-specific coefficients are also positive, with Governance significant at the 5% level and Environmental and Social ratings at the 10% level under firm-clustered inference. Winsorizing lagged TIA at the 1st and 99th percentiles yields similar results. Contemporaneous OLS, exploratory quantile, and ordered logistic analyses provide supplementary evidence under different specifications. The principal estimates describe unadjusted associations and do not establish causality. The findings describe sector-specific relationships between innovation inputs and corporate sustainability rather than demonstrated innovation outcomes or sustainability mechanisms.