ESG Performance: A Financial Goldmine or a Delusion?
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2023-07-14
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en
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This study aims to explore the effect of ESG performance on corporate financial performance. This study examines if the contradicting results found in previous research could be explained by incorporating a moderating variable of non-financial audit reports into the analysis. A panel data regression analysis was performed using a sample of 228 publicly listed companies (684 observations) in Western Europe. The results showed that ESG performance has a positive effect on corporate financial performance when it is moderated by the presence of a non-financial audit report. This effect can, however, only be observed after one year and with Tobin's Q as the measurement for corporate financial performance. Analyses performed without the moderating variable did not show any significant results.
Keywords: ESG Performance, ROA, Tobin’s Q, Corporate Financial Performance, Non-financial
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Faculteit der Managementwetenschappen