Is there a connection between ESG scores and a company’s profitability? Empirical evidence on selected Stoxx Europe 600 firms

dc.contributor.authorMusa, Hussam
dc.contributor.authorKrištofík, Peter
dc.contributor.authorLysenko, Yaroslav
dc.contributor.authorMedzihorský, Juraj
dc.date.accessioned2025-09-19T07:46:36Z
dc.date.available2025-09-19T07:46:36Z
dc.date.issued2024
dc.descriptionIn: Investment Management and Financial Innovations = Investment Management & Financial Innovations. Sumy : Business Perspectives, 2024. ISSN 1810-4967. Vol. 21, no. 3 (2024), pp. 344-356.
dc.description.abstractThis study scrutinizes the potential correlation between Environmental, Social, and Governance (ESG) scores and the profitability of firms listed in the selected STOXX Europe 600 index. Utilizing panel regression analysis, the study examines data from 385 non-financial companies over the period 2017 to 2021, correlating CSRHub's ESG scores and selected financial variables with corporate profitability measured by ROA. The investigation reveals that, overall, ESG scores do not have a significant impact on profitability, except for the ESG-community sub-score, which shows a slight negative influence. Thus, this paper partially supports studies that show a negative correlation between ESG and profitability, even though such results are in the minority in the literature. The overall results suggest that while ESG scores may reflect a company's ethical stance, they are not a predominant factor influencing its profitability. However, this is not the case for leverage, as the importance of capital structure for profitability is confirmed.
dc.description.sponsorshipVEGA 1/0579/21 Výskum determinantov a paradigiem finančného manažmentu v kontexte pandémie COVID-19
dc.identifier.doihttps://doi.org/10.21511/imfi.21(3).2024.28
dc.identifier.issn1810-4967
dc.identifier.issn1812-9358
dc.identifier.urihttps://repo.umb.sk/handle/123456789/836
dc.language.isoen
dc.publisherBusiness Perspectives : Sumy
dc.rightsCC BY Creative Commons Attribution 4.0. International
dc.rightsinfo:eu-repo/semantics/openAccess
dc.rights.urihttps://creativecommons.org/licenses/by/4.0/
dc.subjectESG faktory
dc.subjectESG factors
dc.subjectziskovosť
dc.subjectprofitability
dc.subjectvýkonnosť spoločnosti
dc.subjectcompany performance
dc.titleIs there a connection between ESG scores and a company’s profitability? Empirical evidence on selected Stoxx Europe 600 firms
dc.typeArticle
dc.typeinfo:eu-repo/semantics/article

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