A Study on Indian Listed Companies Perform in ESG Areas Affects Its Overall Value and Profit

References

[1] Alshehhi et al., 2018. How sustainability practices affect a company’s financial performance: Looking at past research and future possibilities Sustainability, 10 (2) (2018), p. 494

[2] Barnett, 2007. How different groups influence a company and how that affects financial returns from social responsibility Academy of Management Review, 32 (2007), pp. 794-816

[3] Brammer et al., 2006. How a company's social performance affects its stock value: Evidence from the UK Financial Management, 35 (2006), pp. 97-116

[4] Eccles and Youmans, 2015. What is important for credit ratings and how companies disclose that information Harvard Business School Working Paper (2015) 079

[5] Fatemi et al., 2018. How ESG performance affects a company’s value: The role of transparency Global Finance Journal, 38 (2018), pp. 45-64

[6] Friede et al., 2015. How ESG and financial performance are linked: Evidence from over 2000 studies Journal of Sustainable Finance & Investment, 5 (4) (2015), pp. 210-233

[7] Han et al., 2016. How corporate social responsibility is connected to financial performance in Korea Asian Journal of Sustainability and Social Responsibility, 1 (2016), pp. 61-76

[8] Li et al., 2018. How environmental, social, and governance reporting affects a company’s value: The role of CEO power The British Accounting Review, 50 (1) (2018), pp. 60-75

[9] Marsat and Williams, 2011. How corporate social responsibility affects market value: Evidence from around the world International Conference of the French Finance Association (AFFI) (2011) May 11-13 2011

[10] Nollet et al., 2016. How corporate social responsibility and financial performance are related: A deeper and more detailed look Economic Modelling, 52 (2016), pp. 400-407

[11] Stock and Watson, 2015. A basic introduction to econometrics (3rd edition), Pearson Education Limited (2015)

[12] Velte, P. 2017. Does ESG performance affect a company’s financial success? Evidence from Germany Journal of Global Responsibility, 8 (2017), pp. 169-178

[13] Yoon et al., 2018. Does ESG performance improve a company’s value? Evidence from Korea Sustainability, 10 (10) (2018), p. 3635

[14] Zhao, C., 2018. How ESG and financial performance are connected: Evidence from China’s power generation companies Sustainability, 10 (2018), pp. 2607-2826

@article{1712990,
      author = {Sanjota S Sirsangi},
      title = {A Study on Indian Listed Companies Perform in ESG Areas Affects Its Overall Value and Profit},
      journal = {Iconic Research And Engineering Journals},
      year = {2019},
      volume = {2},
      number = {10},
      pages = {621-625},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1712990.pdf},
      abstract = {Introduction: Environment, Social, and Governance (ESG) from listed company?s view, doing something about these issues can cost money. In meetings and other groups, a common question is whether the money and resources needed are worth it financially. This paper looks into whether being good in ESG an area is connected to a company's financial success.
Objective of study:  In this study, we examine how a company's performance in Environment, Social, and Governance (ESG) areas influences its value and profitability. 
Research methodology: In this paper used a large amount of data to better understand this link. Started by choosing the top 100 publicly listed companies in India, Covering 5 years from 2014 to 2018.
Finding: Findings show that the overall ESG score has a positive and significant relationship with the company's value. 
Results: The Social and Governance parts of the ESG score also have a positive and important connection to value, but the Environment part does not. However, all the ESG scores?when considered together, as well as individually for Environment, Social, and Governance?are positively and importantly related to the company's profitability. 
Suggestion: Suggest that focusing on strong ESG performance can lead to better financial outcomes for the company in terms of both its value and its profits.},
      keywords = {Company, Environment, Social, Governance, Value, Profit},
      month = {April},
      doi = {https://doi.org/10.64388/IREV2I10-1712990}
  }