Abstract
[Purpose] This study analyzed the relationship between ESG and labor investment efficiency. Recently, as companies’ interest in ESG management has increased in each field, a number of studies on investment efficiency have been conducted. However, research related to labor investment is insufficient. In addition, there are conflicting hypotheses about investment efficiency, so the need for research emerges.
 [Methodology] From 2011 to 2020, 5,277 companies settled in corporations (excluding the financial industry) were analyzed. The ESG score was designated as a real number from 1 to 6, and the relationship between ESG and labor investment efficiency was empirically analyzed using Pinnuck and Lillis (2007)’s labor investment inefficiency research model.
 [Findings] It was found that there was a significant negative (－) result between the ESG level of a company and labor investment inefficiency. Among them, environmental and social scores did not significantly affect labor investment inefficiency, and only governance scores significantly reduced labor investment inefficiency.
 [Implications] This study is expected to use the ESG level of a company as useful information for investment decision－making when considering the labor investment factors of a company.
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