ESG Performance: A Financial Goldmine or a Delusion?

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2023-07-14

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en

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Abstract

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

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