Proceedings of the 3rd International Conference on Artificial Intelligence in Economics, Finance and Management (ICAIEFM 2025)

<Previous Article In Volume
Next Article In Volume>

Nexus between ESG Scores and Financial Performance of Select Indian Companies

Authors
A. P. Ashida1, *, E. M. Afsal2, U. Mohammed Roshif3
1Research Scholar, Dept. of Business Administration and Management, Kerala University of Fisheries and Ocean Studies (KUFOS), Kochi, Kerala, India
2Professor, Dept. of Business Administration and Management, Kerala University of Fisheries and Ocean Studies (KUFOS), Kochi, Kerala, India
3Assistant Professor, Dept. of Management Studies, Malabar College of Advanced Studies, Vengara, Kerala, India
*Corresponding author. Email: ashidaapfathima@gmail.com
Corresponding Author
A. P. Ashida
Available Online 6 November 2025.
DOI
10.2991/978-94-6463-896-7_7How to use a DOI?
Keywords
Sustainability; Financial Performance; ESG performance; GMM; FE Regression
Abstract

The research examines the link between financial performance and sustainable practices reflected by ESG (Environmental, Social, and Governance) scores in select Indian companies. We employ a sample of thirty companies with the highest ESG scores from the Nifty 100 ESG index, and examine how their financial performance is impacted by their performance in ESG criterion scores. The study analyses accounting as well as market data for a period of five years from 2020 to 2024 using Fixed Effect regression and System GMM (System Generalized Method of Moments) model and correlation matrix. The model includes Tobin’s Q, Return on Asset (RoA), and Return on Equity (RoE) as dependent variables, while ESG performance as the main independent variable. The result of the study reveals a better ESG performance causes financial performance, reiterating the need for sustainability reporting-which includes disclosing ESG scores. This would help sustainable investment practices as well as company practices. The findings have significance for investors, corporations, regulators, and legislators.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

<Previous Article In Volume
Next Article In Volume>
Volume Title
Proceedings of the 3rd International Conference on Artificial Intelligence in Economics, Finance and Management (ICAIEFM 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
6 November 2025
ISBN
978-94-6463-896-7
ISSN
2352-5428
DOI
10.2991/978-94-6463-896-7_7How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - A. P. Ashida
AU  - E. M. Afsal
AU  - U. Mohammed Roshif
PY  - 2025
DA  - 2025/11/06
TI  - Nexus between ESG Scores and Financial Performance of Select Indian Companies
BT  - Proceedings of the 3rd International Conference on Artificial Intelligence in Economics, Finance and Management (ICAIEFM 2025)
PB  - Atlantis Press
SP  - 114
EP  - 138
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-896-7_7
DO  - 10.2991/978-94-6463-896-7_7
ID  - Ashida2025
ER  -