Does ESG disclosure really influence the firm performance? Evidence from India
V Veeravel,
Vijaya Prabhagar Murugesan and
Vijayakumar Narayanamurthy
The Quarterly Review of Economics and Finance, 2024, vol. 95, issue C, 193-202
Abstract:
In this paper, we examine the influence of ESG disclosure scores on firm performance of companies listed in the National Stock Exchange (NSE). The study uses 167 sample firms from 2010 to 2020. We capitalise overall ESG disclosure scores taken as a proxy to measure the effect of sustainability disclosure on firm performance. Further, we consider the return on assets (ROA), return on equity (ROE), Tobin’s Q, and Price Earnings ratio (P/E ratio) as firm performance measures. We employ dynamic panel data regression analysis to examine the influence of ESG disclosures on performance of the firm. In order, to address the endogeneity issues, we apply Generalised Method of Moments (GMM) model. The study results show a positive relationship between ESG disclosure and firm performance. It suggests that companies’ desire to enhance their performance need to pay more attention towards sustainability disclosures.
Keywords: Sustainability; ESG disclosure; Firm performance; GMM (search for similar items in EconPapers)
JEL-codes: G30 M41 Q56 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:quaeco:v:95:y:2024:i:c:p:193-202
DOI: 10.1016/j.qref.2024.03.008
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