Unveiling the financial effect of ESG disclosure on financial performance in India: climate-sensitive corporates’ perspective

IF 1.7 Q2 ECONOMICS
Santi Gopal Maji, Prachi Lohia
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引用次数: 0

Abstract

Purpose

The study aims to examine the impact of environmental, social and governance (ESG) disclosure on financial performance by considering the moderating impact of less and high climate-sensitive industry firms.

Design/methodology/approach

The present study is a panel data approach with a sample of the top 100 Bombay Stock Exchange (BSE)-listed non-financial firms covering the years 2019–2022. Appropriate panel data models have been used to investigate the association between ESG disclosure and financial performance, followed by an instrumental variable regression model to address endogeneity. Further, the panel data interaction effect model has been used to examine the moderating impact.

Findings

The results favour the value-enhancing function of ESG disclosure. Of the three ESG components, only the G factor affects firm performance significantly. The interaction effect model suggests that the link between ESG disclosure and financial performance is moderated by industry. However, this effect is greater for less sensitive industries. The results are robust to endogeneity.

Originality/value

The study’s novelty lies in the use of the integrated “Stakeholder Capitalism Metrics”, which has not been previously used in any study to assess the ESG disclosure of corporates. To further distinguish itself, the moderating impact of high and less climate-sensitive industry firms on the ESG-financial performance link, which remains unexplored in the fast-emerging nation of India, is looked into.

揭示环境、社会和公司治理信息披露对印度财务业绩的财务影响:气候敏感型企业的视角
本研究采用面板数据方法,以孟买证券交易所(BSE)上市的前 100 家非金融企业为样本,时间跨度为 2019-2022 年。本研究采用了适当的面板数据模型来研究环境、社会和治理信息披露与财务业绩之间的关联,然后采用工具变量回归模型来解决内生性问题。此外,还使用了面板数据交互效应模型来研究其调节作用。在三个 ESG 要素中,只有 G 要素对公司业绩有显著影响。交互效应模型表明,ESG 披露与财务业绩之间的联系受到行业的调节。但是,这种影响对敏感度较低的行业更大。该研究的新颖之处在于使用了综合的 "利益相关者资本主义指标",而此前没有任何研究使用过该指标来评估企业的环境、社会和治理信息披露。为了进一步突出自己的特色,研究还探讨了对气候敏感度较高和较低的行业公司对环境、社会和公司治理与财务业绩之间联系的调节作用,这在印度这个快速崛起的国家尚未得到探索。
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来源期刊
CiteScore
4.40
自引率
11.10%
发文量
67
期刊介绍: The International Journal of Ethics and Systems (formerly named Humanomics, the International Journal of Systems and Ethics) is a multidisciplinary journal publishing peer review research on issues of ethics and morality affecting socio-scientific systems in epistemological perspectives. The journal covers diverse areas of a socio-scientific nature. The focus is on disseminating the theory and practice of morality and ethics as a system-oriented study defined by inter-causality between critical variables of given problems.
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