THE RELATIONSHIP BETWEEN ESG PRACTICES AND FINANCIAL PERFORMANCE OF INDIAN BASIC MATERIALS MANUFACTURER COMPANIES
In India, nowadays companies are moving from short-term goals of profit maximization to long-term sustainable ESG (environmental, social, and governance) goals. Has become a dominant source of corporate risk and profit and may affect the company’s financial performance. This study explains the effect of environmental, social, and governance (ESG) practices on a company’s financial performance in India. This study uses a sample of Indian Basic material manufacturing companies from 2016 to 2020. A Panel data regression method was carried out to evaluate possible links between ESG Practices as determined by using a database of Thomson Reuters and accounting and market-based measures of financial performance (Return on Assets and Tobin’s Q). Findings show that ESG Practices have an unfavourable relationship with company’s financial performance
ESG, corporate risk, financial performance, Accounting and market based