The aim of this chapter is to measure the effect of ESG scores on financial performance indicators while accounting on the effects of individual components assembling the measure of the ESG score (environmental, social and governance pillar scores). This empirical study includes a sample of companies listed on Danish stock market (Nasdaq OMX Copenhagen) for the period from 2010 - 2018. Using the dataset collected from Thompson Reuters Eikon database, this study conducts a panel data regression with the fixed effects to measure the impact of both the aggregated score, and the separate components that are used to compute the overall score, on two financial performance indicators (ROA and Tobin's Q). The study finds that ESG scores have positive impact on Tobin's Q and not on ROA, which may be the outcome of different directions of the effects that the separate components have on the two financial performance indicators.
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Front Matter
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Part 1: DEFINING A SUSTAINABILITY-DRIVEN BUSINESS STRATEGY
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Part 2: SUSTAINABILITY-DRIVEN BUSINESS STRATEGIES IN MARKETING
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Part 3: SUSTAINABILITY-DRIVEN BUSINESS STRATEGIES IN INNOVATION AND ENTREPRENEURSHIP
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Part 4: SUSTAINABILITY-DRIVEN BUSINESS STRATEGIES IN OPERATIONS AND INFORMATION SYSTEMS
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Part 5: SUSTAINABILITY-DRIVEN BUSINESS STRATEGIES IN FINANCE AND ACCOUNTING
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Part 6: SUSTAINABILITY-DRIVEN BUSINESS STRATEGIES IN HUMAN RESOURCES
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Part 7: SUSTAINABILITY-DRIVEN BUSINESS STRATEGIES ACROSS FUNCTIONAL AREAS IN AN ORGANIZATION
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Part 8: CASE STUDIES ON SUSTAINABILITY-DRIVEN BUSINESS STRATEGIES
