Show simple item record

dc.contributor.authorEkendahl, Martin
dc.contributor.authorHedström, Philippa
dc.date.accessioned2023-06-29T12:51:06Z
dc.date.available2023-06-29T12:51:06Z
dc.date.issued2023-06-29
dc.identifier.urihttps://hdl.handle.net/2077/77555
dc.description.abstractThis thesis examines the relationship between Environmental, Social, and Governance (ESG) scores and financial performance as measured by both accounting- and market-based measures; Return on Assets and Tobin's Q. The study takes a particular focus on the European Union (EU), more specifically on companies operating in the region and the union's strong commitment to achieving the Sustainable Development Goals (SDGs) and more general efforts towards a more sustainable future. The large and updated dataset of 288 companies enables a more robust basis for conclusions. Eight fixed effects regression models are run to perform causal inference analysis. The results generally indicate a significant and positive impact on both ROA and Tobin's Q, confirming the findings of many previous studies and the hypothesis. Nevertheless, the combined ESG score and the social pillar (S) do not significantly impact Tobin's Q. A key finding is that the environmental pillar reaches significance with a positive impact on both financial performance measures. This result serves as a contribution to existing literature. Overall, the results provide evidence that ESG factors should be considered by both existing shareholders as well as potential investors. Additionally, the study may be of interest to regulators and companies as support for decision-making.en
dc.language.isoengen
dc.relation.ispartofseries202306:296en
dc.subjectESG scoreen
dc.subjectfinancial performanceen
dc.subjectstakeholder theoryen
dc.subjectthe EUen
dc.subjectfixed effects modelen
dc.titleFrom Tree Huggers to Money Makers: How ESG Scores Boost Corporate Financial Performance in the EUen
dc.title.alternative.en
dc.typetext
dc.setspec.uppsokSocialBehaviourLaw
dc.type.uppsokM2
dc.contributor.departmentUniversity of Gothenburg/Department of Economics
dc.contributor.departmentGöteborgs universitet/Institutionen för nationalekonomi med statistik
dc.contributor.departmentUniversity of Gothenburg/Department of Business Administration
dc.contributor.departmentGöteborgs universitet/Företagsekonomiska institutionen
dc.type.degreeStudent essay


Files in this item

Thumbnail

This item appears in the following Collection(s)

Show simple item record