ESG and Financial Performance

Aybars, Aslı; Ataünal, Levent; Gurbuz, Ali Osman

doi:10.4018/978-1-5225-7180-3.ch029

Cited by 27 publications

(9 citation statements)

References 30 publications

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“…Azmi et al (2021) analyze the link between ESG activity and bank value and conclude that ESG activity benefits cash flows and efficiency. Aybars et al ’s (2019) study finds that the ESGS affects Tobin’s Q and that firms with a higher Tobin’s Q are less sensitive to ESG problems. The importance of firm size as a control variable has long been understood.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 84%

“…Nirino et al (2021), Nekhili et al (2019) and Azmi et al (2021) stated a significant association between ESG performance and market performance. Similarly, Aybars et al (2019) found a link between ESG and investor attitudes. According to Tamayo-Torres et al (2018), investors use ESG data for predicted financial performance.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 85%

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Does environmental, social and governance (ESG) affect market performance? The moderating role of competitive advantage

Dkhili

2023

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Purpose This research aims to determine the influence of environmental, social and governance (ESG) factors on market performance. The study shows the perspective of ESG on market performance. The study attempted to test the relationship between ESG and Tobin’s Q and the effect of control variables. Design/methodology/approach The study used panel data from a sample covering 720 firms and ran a fixed-effects model regression during the 2007–2019 period for eight European countries’ listed companies. Findings The findings reveal that ESG positively impacts Tobin’s Q. According to the findings, high company ESG performance boosts market performance via the moderator effect of competitive advantage. The results indicate that all control variables are significant. The firm’s leverage has a negative relationship with ESG. The size of the firm impacts ESG positively. Also, the results prove that the firm’s size and industry positively affect Tobin’s Q. Research limitations/implications The findings of this study suggest that managers, practitioners and authorities interested in learning about ESG scores (ESGSs), market performance and competitive advantage might draw intriguing conclusions from the data. Managers can identify the appropriate levels of competitive advantage that improve market performance. Practitioners must determine whether fit, size, growth, leverage and industry could enhance market performance. The findings also give authorities and the board of directors information on future growth opportunities for the company and the country. Originality/value The research presents a vision of how ESG factors affect market performance. This study aims to identify the positive link between ESGSs and European market performance.

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Section: Literature Review and Hypothesis Developmentmentioning

confidence: 84%

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 85%

Does environmental, social and governance (ESG) affect market performance? The moderating role of competitive advantage

Dkhili

2023

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“…Subsequently, investors starting to consider timely and accurate non-financial terms such as ESG parameters factors in their investment decisions. Listed firms started to integrate ESG activities as one of the strategic direction and being effectively disclosed those activities to the investors and stakeholders (Aybars et al, 2019). This being supported by the stakeholder theory (Freeman, 1984) that holds firm should also focus on the comprehensive need of stakeholders such as the workforces, dealers, clienteles, societies, financial institutions, regulatory agents and others; and not only towards firm's profit maximizations.…”

Section: Problem Statementmentioning

confidence: 99%

Environmental, Social And Governance (Esg) Disclosure And Financial Performance

Mohamad¹

2020

European Proceedings of Social and Behavioural Sciences

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“…Sustainable business models adopt a multi-criteria character in the realisation of corporate objectives, where sustainability is not the only determinant of development (integration of objectives [9] of the value bundling process). Highlighted in the literature as a tool for assessing the effectiveness of green growth-oriented activities is the ESG, focusing attention on [10]:…”

Section: Introductionmentioning

confidence: 99%

Pharmaceutical Companies in the Light of the Idea of Sustainable Development—An Analysis of Selected Aspects of Sustainable Management

Chomać-Pierzecka

2023

Sustainability

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The strategy of creating value and increasing the competitiveness of economic entities under the idea of sustainable development entails the need to provide access to up-to-date knowledge, which is to strengthen the decision-making basis and increase the level of properties of economic decisions. This argument strengthens the legitimacy of undertaking a research problem, oriented towards an overview of contemporary business challenges in the light of sustainable development, to assess the direction of activities undertaken by enterprises in the economic and socio-environmental sphere in connection with their activities. The need to undertake sustainable activities—with an emphasis on the environmental aspect—is particularly relevant to the pharmaceutical industry, which, in implementing activities oriented towards the protection of human health and life in connection with drug production, treats the issue of concern for the health of the planet as an extremely important challenge. The literature on the subject generally and insufficiently discusses sustainability issues for companies operating in this industry. Recognising the pharmaceutical sector as an area of economy of key importance in the socio-economic dimension at the level of national economies and at the international level, it became reasonable to scientifically identify the indicated issues in relation to pharmaceutical industry enterprises, with particular emphasis on entities operating in Poland. Hence, the main aim of the study, in response to the diagnosed gap, was to assess the directions of improvement of business models of Polish pharmaceutical enterprises, with consideration given to determinants of sustainable development. This study draws attention to the significance of practical choices of pharmaceutical entities—determined by their activity strategy, on sustainable development, as well as the impact of performance on the practice of sustainable development in the light of the assessment of the companies’ managerial effectiveness, demonstrating their significant importance. The realisation of the objective was based on a thorough review of the literature on the topic explored, as well as on the results of a diagnostic survey conducted among Polish pharmaceutical companies. An in-depth analysis of the findings in the area explored was conducted using statistical testing, including statistical ordering of variables, variable correlation matrix, logistic regression, odds ratio, and PQstat software. The main conclusion of the study is the finding that the business models of Polish pharmaceutical enterprises are continuously improving towards increasing the level of sustainable development, and the main determinant for the realisation of the above is the development of innovation, strongly correlated with the category of particularly good results on operations, constituting their managerial effectiveness.

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ESG and Financial Performance

Cited by 27 publications

References 30 publications

Does environmental, social and governance (ESG) affect market performance? The moderating role of competitive advantage

Does environmental, social and governance (ESG) affect market performance? The moderating role of competitive advantage

Environmental, Social And Governance (Esg) Disclosure And Financial Performance

Pharmaceutical Companies in the Light of the Idea of Sustainable Development—An Analysis of Selected Aspects of Sustainable Management

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