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The role of financial slack in enhancing ESG and organisations’ financial performance in the financial services sector
Mini Dissertation (MPhil (Corporate Strategy))--University of Pretoria, 2025.
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| Format: | Thesis |
| Language: | English |
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University of Pretoria
2026
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| _version_ | 1867613661839753216 |
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| access_status_str | Open Access |
| author2 | Reinecke, Andrea |
| author_browse | Reinecke, Andrea |
| author_facet | Reinecke, Andrea |
| collection | Thesis |
| dc_rights_str_mv | © 2025 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. |
| description | Mini Dissertation (MPhil (Corporate Strategy))--University of Pretoria, 2025. |
| format | Thesis |
| id | oai:repository.up.ac.za:2263/109243 |
| institution | University of Pretoria (South Africa) |
| language | English |
| last_indexed | 2026-06-10T12:39:42.090Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository |
| publishDate | 2026 |
| publishDateRange | 2026 |
| publishDateSort | 2026 |
| publisher | University of Pretoria |
| publisherStr | University of Pretoria |
| record_format | dspace |
| source_str | UPSpace — University of Pretoria Institutional Repository |
| spelling | oai:repository.up.ac.za:2263/109243 The role of financial slack in enhancing ESG and organisations’ financial performance in the financial services sector Reinecke, Andrea ichelp@gibs.co.za Pieterse, Thea Tshabalala, Tshepo UCTD Environmental, Social and Governance (ESG) ESG performance ESG score Johannesburg Stock Exchange (JSE) Financial slack Mini Dissertation (MPhil (Corporate Strategy))--University of Pretoria, 2025. This research examined the moderating role of financial slack in the complex relationship between Environmental, Social, and Governance (ESG) performance and financial performance within South Africa's financial services sector. As ESG considerations increasingly shape corporate strategy, companies must navigate the balance between ESG initiatives and profitability. Existing research presents contradictory findings on whether ESG investments enhance or hinder financial performance, particularly in emerging economies where regulatory frameworks and institutional trust remain inconsistent. Grounded in the Resource-Based View (RBV) theory, this research bridges a crucial gap by investigating the moderating role of financial slack in the relationship between ESG performance and financial performance. This research leveraged a Generalized Linear Model (GLM), incorporating ESG ratings and financial data from 21 publicly listed financial services companies on the Johannesburg Stock Exchange (JSE) over the period 2017 to 2024. This research proved that ESG performance is detrimental to financial performance of financial services companies in South Africa. Additionally, financial slack moderates the relationship between ESG performance and Tobin’s Q but not Return-on-Assets. The insights derived from this research holds profound implications for corporate leaders, policymakers, and stakeholders invested in financial sustainability. By unveiling the potential of financial slack as a catalyst for ESG success, companies can strategically align their sustainability efforts with profitability, driving informed financial resource allocation and policy development. Gordon Institute of Business Science (GIBS) MPhil (Corporate Strategy) Unrestricted Gordon Institute of Business Science (GIBS) SDG-08: Decent work and economic growth 2026-03-23T09:45:29Z 2026-03-23T09:45:29Z 2026-05-05 2025 Mini Dissertation * A2025 http://hdl.handle.net/2263/109243 en © 2025 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. application/pdf University of Pretoria |
| spellingShingle | UCTD Environmental, Social and Governance (ESG) ESG performance ESG score Johannesburg Stock Exchange (JSE) Financial slack The role of financial slack in enhancing ESG and organisations’ financial performance in the financial services sector |
| title | The role of financial slack in enhancing ESG and organisations’ financial performance in the financial services sector |
| title_full | The role of financial slack in enhancing ESG and organisations’ financial performance in the financial services sector |
| title_fullStr | The role of financial slack in enhancing ESG and organisations’ financial performance in the financial services sector |
| title_full_unstemmed | The role of financial slack in enhancing ESG and organisations’ financial performance in the financial services sector |
| title_short | The role of financial slack in enhancing ESG and organisations’ financial performance in the financial services sector |
| title_sort | role of financial slack in enhancing esg and organisations financial performance in the financial services sector |
| topic | UCTD Environmental, Social and Governance (ESG) ESG performance ESG score Johannesburg Stock Exchange (JSE) Financial slack |
| url | http://hdl.handle.net/2263/109243 |