Does ESG Integration Enhance Financial Performance in Emerging Economies? A Systematic Review of Brics

Title

Does ESG Integration Enhance Financial Performance in Emerging Economies? A Systematic Review of Brics

Creator

Cherian S.; Seranmadevi R.

Description

A growing wave of environmental and social problems is driving the world's focus on sustainability, and the UN's creation of the Sustainable Development Goals (SDGs) and ESG-focused investments are giving this movement a strong push. Today, investors consider ethical and moral principles coupled with monetary factors. ESG, which stands for Environmental, Social, and Governance, is a set of factors used to judge how well a company runs. These factors look at how the company protects the environment, treats its workers and society, and manages itself fairly and effectively. The present study is a systematic literature review of ESG and its influence on the firm financial performance of BRICS nations. The majority of the existing literature places focus on ESG in the developed world and this study aims to bridge this divide by focusing on Emerging economiesBRICS. The majority of the studies reveal a positive association between ESG and firm financial performance. The findings reveal the primary financial variables that affect ESG performance in BRICS countries such as firm size, debt ratios, weighted average cost of capital, return on equity (ROE), return on capital (ROC), Returns on Sales (ROS), Return on Assets (ROA), transparency levels, and financial leverage. Various theories such as Long-term gains, Institutional theory, Stakeholder theory, and Legitimacy Theory have laid the foundation for the research in the area. The review highlights the need for uniform ESG frameworks and enhanced disclosures to foster responsible investment practices in emerging economies like BRICS nations, providing valuable insights for companies, investors, and regulatory bodies. The Author(s), under exclusive license to Springer Nature Switzerland AG 2025.

Source

Studies in Big Data, Vol-158, pp. 383-395.

Date

2025-01-01

Publisher

Springer Science and Business Media Deutschland GmbH

Subject

BRICS; Emerging economies; ESG; Financial performance; Sustainability; Sustainable Development Goals (SDGs); Systematic literature review

Coverage

Cherian S., Christ (Deemed to Be University), Bangalore, India; Seranmadevi R., Christ (Deemed to Be University), Bangalore, India

Rights

Restricted Access

Relation

ISSN: 21976503

Format

Online

Language

English

Type

Book chapter

Identifier

https://doi.org/10.1007/978-3-031-70855-8_33

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