Impact of ESG Factors on the Financial Performance of Corporates in India
description: This study investigates the connection between Indian companies' financial results and Environmental, Social, and Governance (ESG) performance, with a focus on socially and environmentally sensitive industries. There is little data on the financial effects of ESG integration in developing nations like India, even though it is becoming more and more crucial for long- term value development. Using a quantitative approach involving ESG ratings and financial indicators (Return on Equity [ROE], Return on Assets [ROA], and Return on Capital Employed [ROCE]) we analyze the performance of firms from 2021 to 2023 in five different sectors. Among the pillars, environmental issues had the most significant effect on material financial success, showing a positive but weak correlation with ESG scores. However, the study also investigates into sectoral distinctions, pointing to differential financial outcomes associated with ESG across industries. 2025 by IGI Global Scientific Publishing. All rights reserved.
creator: Patil, Anand; Sanwal, Neha
source: Behavioral Finance and AI Tools for Sustainability;pp.227-249
publisher: IGI Global
date: 01-01-2025
rights: Restricted Access; Hardcopy may be available in the library
relation: ISBN: 979-836939686-5; 979-836939684-1;
language: English
type: Book chapter
coverage: Patil A., Christ University, Bangalore, India; Sanwal N., Christ University, Bangalore, India