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ESG scores and firm performance- evidence from emerging market

Author

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  • Narula, Radhika
  • Rao, Purnima
  • Kumar, Satish
  • Matta, Rahul

Abstract

This paper investigates the effect of ESG (environmental, social, and governance) disclosure scores on the firm's performance (operational, financial, and market) using Indian firms. The study assesses the critical COVID period and provides empirical evidence from the world's 5th largest economy. The findings from empirical results declare that all components of ESG are not significantly related to firm performance. We conclude that the impact of ESG-related activities is yet to be witnessed tangibly for firm performance. The study also opens an array of future research opportunities.

Suggested Citation

  • Narula, Radhika & Rao, Purnima & Kumar, Satish & Matta, Rahul, 2024. "ESG scores and firm performance- evidence from emerging market," International Review of Economics & Finance, Elsevier, vol. 89(PA), pages 1170-1184.
    • Handle: RePEc:eee:reveco:v:89:y:2024:i:pa:p:1170-1184
    DOI: 10.1016/j.iref.2023.08.024
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    More about this item

    Keywords

    ESG investing; ESG disclosure; Firm performance; COVID-19; Economy; India;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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