THE RELATIONSHIP BETWEEN ESG PRACTICES AND FINANCIAL PERFORMANCE OF INDIAN BASIC MATERIALS MANUFACTURER COMPANIES
Authors/Creators
- 1. Research Scholar, GD Goenka University, Gurugram.
- 2. Dean of School of Management, GD Goenka University, Gurugram.
Description
Abstract
In India, nowadays companies are moving from short-term goals of profit maximization to long-term sustainable ESG (environmental, social, and governance) goals. Has become a dominant source of corporate risk and profit and may affect the company’s financial performance. This study explains the effect of environmental, social, and governance (ESG) practices on a company’s financial performance in India. This study uses a sample of Indian Basic material manufacturing companies from 2016 to 2020. A Panel data regression method was carried out to evaluate possible links between ESG Practices as determined by using a database of Thomson Reuters and accounting and market-based measures of financial performance (Return on Assets and Tobin’s Q). Findings show that ESG Practices have an unfavourable relationship with company’s financial performance