ENVIRONMENTAL, SOCIAL, GOVERNANCE INVESTING, COVID-19, AND CORPORATE PERFORMANCE IN MUSLIM COUNTRIES

Hasan Tekin () and Fatih Güçlü ()
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Hasan Tekin: University of Karabuk, Turkey
Fatih Güçlü: University of Karabuk, Turkey

Journal of Islamic Monetary Economics and Finance, 2023, vol. 9, issue 1, 107-132

Abstract: We examine the impact of Environment, Social, and Governance–ESG investing on corporate performance of non-financial firms in Muslim countries during the pandemic. Employing the random effect panel model with 1,546 firm-year observations, we find that the ESG combined score and its pillars have significant influence on corporate performance during the COVID-19 period. Namely, the performance of firms with higher ESG is relatively less affected as compared to the performance of firms with lower ESG. We also note that firms in Malaysia and the United Arab Emirates with high ESG have better operational (financial) performance. Finally, from the sectorial perspective, health care and energy (consumer staples) firms with higher ESG have higher operational (financial) performance during the pandemic.

Keywords: Disclosure; ESG; Islamic; Pandemic; Sustainability (search for similar items in EconPapers)
JEL-codes: D10 I12 I31 Z12 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:idn:jimfjn:v:9:y:2023:i:1f:p:107-132

DOI: 10.21098/jimf.v9i1.1592

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