IDEAS home Printed from https://ideas.repec.org/a/url/upravl/v12y2021i6p20-32.html
   My bibliography  Save this article

The impact of ESG reporting on the financial performance of Russian public companies

Author

Listed:
  • Bela S. Bataeva

    (Financial University under the Government of the Russian Federation, Moscow, Russia)

  • Aglaya D. Kokurina

    (National Research University Higher School of Economics, Moscow, Russia)

  • Nikita A. Karpov

    (Benchmark Executive, Moscow, Russia)

Abstract

There is a growing interest in non-financial reporting of public companies, which includes environmental, social and governance (ESG) factors. The paper studies how the degree of ESG disclosure affects corporate performance in Russia. Methodologically, the study relies on the concept of corporate sustainability and stakeholders, according to which ESG reporting increases investors and customers’ confidence in the company and thereby contributes to the growth of profit-based indicators. Among the research methods applied are descriptive, correlation and regression analysis of the relationship between ESG disclosure and return on assets (ROA), equity (ROE) and capital (ROC) of public companies. The sample includes 50 Russian companies whose shares were traded on the Moscow Exchange between 2010 and 2019. The research demonstrates that ESG reporting has a statistically significant positive impact on the financial performance of the companies under review. The degree of this influence is different according to the enterprise’s industry, size and debt level. Moreover, even in similar companies the impact depends on the level of ESG disclosure. The obtained results are of interest primarily to lenders, since the study focuses on financial profit-based indicators, while investors, in addition to traditional analysis, also use value analysis.

Suggested Citation

  • Bela S. Bataeva & Aglaya D. Kokurina & Nikita A. Karpov, 2021. "The impact of ESG reporting on the financial performance of Russian public companies," Upravlenets, Ural State University of Economics, vol. 12(6), pages 20-32, October.
    • Handle: RePEc:url:upravl:v:12:y:2021:i:6:p:20-32
    DOI: 10.29141/2218-5003-2021-12-6-2
    as

    Download full text from publisher

    File URL: https://upravlenets.usue.ru/images/94/2.pdf
    Download Restriction: no
    File URL: https://upravlenets.usue.ru/en/issues-2021/909
    Download Restriction: no
    File URL: https://libkey.io/10.29141/2218-5003-2021-12-6-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bela S. BATAEVA, 2018. "Stakeholder Engagement: The Case of the Russian Largest Oil and Gas Companies," Upravlenets, Ural State University of Economics, vol. 9(4), pages 20-27, August.
    2. Güler Aras & Aslı Aybars & Ozlem Kutlu, 2010. "Managing corporate performance," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 59(3), pages 229-254, March.
    3. Elena A. Fedorova & Lyudmila K. Shiryaeva & Lyubov E. Khrustova & Igor S. Demin & Svetlana V. Ledyaeva, 2020. "Disclosure of environmental information in corporate reports and investment attractiveness of Russian companies," Upravlenets, Ural State University of Economics, vol. 11(5), pages 29-46, November.
    4. Andrey B. Ankudinov & Idelia R. Badykova, 2020. "Empirical analysis of the relationship between the costs of corporate social responsibility policy implementation and Russian companies’ financial performance," Upravlenets, Ural State University of Economics, vol. 11(2), pages 16-26, April.
    5. Archie B. Carroll, 2016. "Carroll’s pyramid of CSR: taking another look," International Journal of Corporate Social Responsibility, Springer, vol. 1(1), pages 1-8, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Anna I. Izgarova & Elena M. Rogova & Olga V. Bakhareva, 2023. "ESG investment relationship with financial performance of Russian companies," Upravlenets, Ural State University of Economics, vol. 14(3), pages 17-29, July.
    2. Pavel A. Mikhnenko, 2023. "Multimodal business analytics: The concept and its application prospects in economic science and practice," Upravlenets, Ural State University of Economics, vol. 14(6), pages 2-18, December.
    3. Irina S. Belik & Anton S. Dutsinin & Natalia L. Nikulina, 2022. "Financial state and investment attractiveness of Russian public companies: The effect of ESG factors," Upravlenets, Ural State University of Economics, vol. 13(6), pages 44-55, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alexandra ZBUCHEA & Florina PÎNZARU, 2017. "Tailoring CSR Strategy to Company Size?," Management Dynamics in the Knowledge Economy, College of Management, National University of Political Studies and Public Administration, vol. 5(3), pages 415-437, September.
    2. María Luisa Pajuelo Moreno & Teresa Duarte-Atoche, 2019. "Relationship between Sustainable Disclosure and Performance—An Extension of Ullmann’s Model," Sustainability, MDPI, vol. 11(16), pages 1-33, August.
    3. Dewan Muktadir‐Al‐Mukit & Firoz Haroon Bhaiyat, 2024. "Impact of corporate governance diversity on carbon emission under environmental policy via the mandatory nonfinancial reporting regulation," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 1397-1417, February.
    4. Camilla Salvatore & Silvia Biffignandi & Annamaria Bianchi, 2022. "Corporate Social Responsibility Activities Through Twitter: From Topic Model Analysis to Indexes Measuring Communication Characteristics," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 164(3), pages 1217-1248, December.
    5. Oleksandra Rozhenko & Maryna Iurchenko & Vytautas Juscius, 2023. "Assessing the provision of innovative technologies for the growth of corporate social responsibility in Lithuania," Eastern-European Journal of Enterprise Technologies, PC TECHNOLOGY CENTER, vol. 5(13 (125)), pages 26-35, October.
    6. Esra Alniacik & Charefeddine Moumen & Umit Alniacik, 2020. "The moderating role of personal value orientation on the links between perceived corporate social performance and purchase intentions," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(6), pages 2724-2734, November.
    7. Stanisavljević Milena, 2017. "Does Customer Loyalty Depend on Corporate Social Responsibility?," Naše gospodarstvo/Our economy, Sciendo, vol. 63(1), pages 38-46, March.
    8. Kahloul, Ines & Sbai, Hicham & Grira, Jocelyn, 2022. "Does Corporate Social Responsibility reporting improve financial performance? The moderating role of board diversity and gender composition," The Quarterly Review of Economics and Finance, Elsevier, vol. 84(C), pages 305-314.
    9. Ligorio, Lorenzo & Caputo, Fabio & Venturelli, Andrea, 2022. "Sustainability disclosure and reporting by municipally owned water utilities," Utilities Policy, Elsevier, vol. 77(C).
    10. Petya Koleva, 2021. "Towards the Development of an Empirical Model for Islamic Corporate Social Responsibility: Evidence from the Middle East," Journal of Business Ethics, Springer, vol. 171(4), pages 789-813, July.
    11. Hajdu, Anna & Daziano, Marcos F. & Visser, Oane, 2021. "Institutions and individual values motivating corporate social responsibility activities in large farms and agroholdings," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(4), April.
    12. Anne Elizabeth Fordham & Guy M. Robinson, 2018. "Mapping meanings of corporate social responsibility – an Australian case study," International Journal of Corporate Social Responsibility, Springer, vol. 3(1), pages 1-20, December.
    13. Heli Wang & Ming Jia & Zhe Zhang, 2021. "Good Deeds Done in Silence: Stakeholder Management and Quiet Giving by Chinese Firms," Organization Science, INFORMS, vol. 32(3), pages 649-674, May.
    14. Berber Nemanja & Slavić Agneš & Aleksić Marko, 2021. "Corporate Social Responsibility in Contemporary Organizations: Evidence from Serbian Processing Industry," Economic Themes, Sciendo, vol. 59(2), pages 227-241, June.
    15. Radka MacGregor Pelikánová & Robert Kenyon MacGregor & Martin Èernek, 2021. "New trends in codes of ethics: Czech business ethics preferences by the dawn of COVID-19," Oeconomia Copernicana, Institute of Economic Research, vol. 12(4), pages 973-1009, December.
    16. Bastič Majda & Mulej Matjaž & Zore Mira, 2020. "CSR and Financial Performance – Linked by Innovative Activities," Naše gospodarstvo/Our economy, Sciendo, vol. 66(2), pages 1-14, June.
    17. Ibrahim Sameer, 2021. "Impact of corporate social responsibility on organization’s financial performance: evidence from Maldives public limited companies," Future Business Journal, Springer, vol. 7(1), pages 1-21, December.
    18. Avant, Deborah & Finn, Devin & Olsen, Tricia D., 2023. "Can CSR strategy mediate conflict over extraction? Evidence from two mines in Peru," World Development, Elsevier, vol. 170(C).
    19. Benjamin S. Thompson, 2019. "Payments for ecosystem services and corporate social responsibility: Perspectives on sustainable production, stakeholder relations, and philanthropy in Thailand," Business Strategy and the Environment, Wiley Blackwell, vol. 28(4), pages 497-511, May.
    20. Elif Akben-Selcuk, 2019. "Corporate Social Responsibility and Financial Performance: The Moderating Role of Ownership Concentration in Turkey," Sustainability, MDPI, vol. 11(13), pages 1-10, July.

    More about this item

    Keywords

    sustainable development; corporate social responsibility; corporate sustainability; financial performance; ESG factors; public companies; Russia;
    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
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:url:upravl:v:12:y:2021:i:6:p:20-32. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Victor Blaginin (email available below). General contact details of provider: https://edirc.repec.org/data/usueeru.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.