Student Name

Raza SabihFollow


Master of Science in Finance


Department of Finance


School of Business Studies (SBS)

Date of Submission

Summer 2023


Dr. Sana Tauseef, Associate Professor and Chairperson Department of Finance


Dr. Saqib Khan, Associate Professor (Finance), Hill and Levene Schools of Business, University of Regina, Canada

Submission Type

Research Project

Document Type

Restricted Access


viii, 48


This thesis investigates the effects of ESG performance on the financial performance of companies in emerging and developed markets from 2005 to 2022 for a comparative analysis between the two markets. ESG performance is measured through Refinitiv ESG scores, and financial performance is measured through Tobin’s Q. Firm size and financial leverage are also included as an additional dimension in the study. We used both linear panel regression analysis and dynamic panel estimation using Arellano-Bond estimators to provide a further value addition to the literature. The findings through simple linear regression analysis suggest that for the both the markets, ESG has a negative and significant impact on the financial performance of firms. Simiarly, this relationship under dynamic panel estimation is also consistent with results indicating a negative relationship, when controlling for the past period values of the financial performance. The findings of the linear regression also suggest that increase in firm size in developed market reduces the inverse impact of ESG on the financial performance, whereas in the emerging market, there is no significant impact on the relationship between ESG and financial performance. Increase in financial leverage of firms, on the other hand, reduces the inverse impact of ESG on financial performance in both the markets. The similarity of findings in both the markets indicate that the relationship between ESG and financial performance is not different across the markets but follow similar patterns.

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