Impact of ESG on Firm Financial Performance; a study on US
Abstract/Description
The research reveals the impact of ESG score on financial performance of the firm in US market. The sample data of the study consists of NYSE firms from 2005 to 2023 broadly covering the two financial crises period, Crises2008 and Covid19. The findings have supported the null hypothesis that ESG firms outperform non-ESG firms. The findings do not align with the EMH hypothesis that says any information in the market is already reflected in asset pricing and there is no opportunity that one can beat the market. I have taken ESG score as my independent variable and ROA, ROE, and MTBV as dependent variables. I have applied Panel GMM with fixed effects to capture the potential problems that arise because of panel data set.
Track
Finance
Session Number/Theme
4A: Finance
Session Chair
Dr. Saqib Sharif ; Dr. Mujeeb Bhayo
Start Date/Time
31-5-2024 9:00 AM
End Date/Time
31-5-2024 10:30 AM
Location
MCS – 3 AMAN CED Building
Recommended Citation
Burney, S. (2024). Impact of ESG on Firm Financial Performance; a study on US. 3rd IBA SBS International Conference 2024. Retrieved from https://ir.iba.edu.pk/sbsic/2024/program/63
COinS
Impact of ESG on Firm Financial Performance; a study on US
MCS – 3 AMAN CED Building
The research reveals the impact of ESG score on financial performance of the firm in US market. The sample data of the study consists of NYSE firms from 2005 to 2023 broadly covering the two financial crises period, Crises2008 and Covid19. The findings have supported the null hypothesis that ESG firms outperform non-ESG firms. The findings do not align with the EMH hypothesis that says any information in the market is already reflected in asset pricing and there is no opportunity that one can beat the market. I have taken ESG score as my independent variable and ROA, ROE, and MTBV as dependent variables. I have applied Panel GMM with fixed effects to capture the potential problems that arise because of panel data set.
