Ecological, Social and Governance Impact on the Company’s Performance: Information Technology Sector Insight

Alexander M. Karminsky, Alexandra A. Egorova () and Daria A. Chigireva ()
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Alexander M. Karminsky: National Research University Higher School of Economics, 20 Myasnitskaya street, City, Moscow 101000, Russia
Alexandra A. Egorova: National Research University Higher School of Economics, 20 Myasnitskaya street, City, Moscow 101000, Russia
Daria A. Chigireva: National Research University Higher School of Economics, 20 Myasnitskaya street, City, Moscow 101000, Russia

International Journal of Information Technology & Decision Making (IJITDM), 2025, vol. 24, issue 03, 765-795

Abstract: Sustainable topics have become increasingly important in recent years, as the world faces growing environmental and social challenges. Environmental, social, and governance (ESG) ratings are tools used to assess the sustainability practices of companies. This study focuses on the impact of environmental, social and governance components on the financial performance of IT companies. The panel data were collected for 43 IT companies operating in the time period from 2004 to 2020. Data include ESG ratings, their components and financial performance indicators of IT companies. The method of OLS regression, a model with fixed individual effects or a model with random individual effects, was used. It was found that the increase in the environmental and social scores has a significant impact on the financial performance of IT companies. This paper is an extended version of our work published in the ITQM 2022.

Keywords: ESG; ESG rating; sustainable development; financial performance (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1142/S0219622023410043

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