Impact of ESG on Coporate Financial Performance

Abstract

The primary aim of the present study is to analyze the influence of environmental, social, and governance (ESG) scores of listed Indian automobile companies on corporate financial performance (CFP). The research explores the impact of ESG on the operational, financial, and market value of the companies using multiple regression analysis. The ESG performance data and financial data of Indian automobile manufacturing companies are collected from CRISIL and the respective companies' websites for statistical analysis. The outcomes of the study suggest that no statistically significant relations have been found between ESG scores and CFP. The present study will add significant value to ESG literature, and the sustainable development of firms for automobile companies around the world. Moreover, the study can be beneficial to global investors, regulators, policymakers, government, and other stakeholders of the business. Hence, the findings may provide evidence about voluntary disclosure of independent factors of ESG score for enhancing corporate sustainable growth prospects.