ESG and financial performance in Asia-Pacific gaming tourism industry : pandemic resilience and recovery

Abstract

After the epidemic, recovery has been a dynamic process, with people prioritizing ‘rational’ consumption before returning to ‘irrational’ activities like gambling. As one of the industries hardest hit by COVID-19, gaming companies were eager to find viable solutions to weather the storm. This study examines all 29 gaming companies in the Asia-Pacific region to assess the impact of environmental, social, and governance (ESG) initiatives on financial performance from 2018 to 2024. We find that while ESG enhances firm value, it also increases uncertainty—a paradox heightened during the pandemic. The crisis served as a litmus test: ESG fostered resilience in developed markets, while short-term survival pressures suppressed its value in emerging economies until a post-crisis convergence. Additionally, effects varied by market focus, underscoring the context-dependent nature of ESG in controversial industries. These insights are vital for practitioners and policymakers seeking effective recovery strategies in the gaming tourism industry.