IMPACT OF ENVIRONMENTAL, SOCIAL AND GOVERNANCE ON FIRM PERFORMANCE

This study examines the impact of ESG (Environmental, Social, and Governance) on firm performance. The data were extracted from SP Global, Money control, NSE Database for the period 2017 to 2021. There are 28 companies and 140 observations. Statistical tools used for this study are Descriptive analysis and Multiple Regression. Board Independence Board Size and Size of the Company has significant impact on ESG, Environmental, Social and Governance factors. This shows that number of Independent Directors in the board and Size of the company has positive impact on ESG and Size of the board has negative impact on ESG. The companies should try to include more Independent Directors so that ESG Score can be improved. Woman on board has no impact on ESG, Environmental and social factors whereas it has significant positive impact on Governance factors. This shows that the companies should include sufficient number of Women Directors in their board which improves their Governance factors because SEBI and other regulatory bodies giving more importance to Corporate Governance factors than their financial results. ESG has an impact on firm performance.

Autorentext

Dr P G Thirumagal, MBA, M.Phil, UGC NET, Ph.D, Associate Professor & Head - MBA Business Analytics, Department of MBA, School of Management Studies & Commerce, VISTAS, Chennai - 600117 has 18 years of teaching experience in the areas of Finance, Statistics and Analytics .