ESG SCORES INFLUENCING THE FINANCIAL PERFORMANCE OF THE INDIAN COMPANIES

Abstract

This study provides insight into information regarding ESG scores and the financial performance of Indian companies. It uses data from 129 companies from 19 sectors collected from S&P Global Co. and analysed with descriptive statistics and OLS regression panel data with fixed effects in SPSS. The findings show that ROCE, ROA and ROE are positively related to the environmental score but not with the social and governance score; EPS are not affected by the ESG score in the Indian companies; PEG and PG are associated with the environmental and governance score but not with the social score. Many integrations of ESG analysis are considered for the financial performance of the companies. The ESG reporting is now essential for this era and its impact on investments too.