International Journal For Multidisciplinary Research

E-ISSN: 2582-2160     Impact Factor: 9.24

A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

Call for Paper Volume 6 Issue 6 November-December 2024 Submit your research before last 3 days of December to publish your research paper in the issue of November-December.

ESG Impact on Stock Valuation- An Empirical analysis of European Markets

Author(s) Dr. Gaurav Barick, Saurobh Barick
Country India
Abstract The natural environment plays a crucial role in the lives of human beings. Global concerns such as pollution, loss of biodiversity, deforestation, social inequality, labour rights, and water shortages present visible dangers to economies and livelihoods that affect companies, funds, investors, and consumers alike. Also, in the current times, with the coming of the Covid-19 pandemic, people are becoming more aware of ESG (Environmental, Social, Governance) issues. It has resulted in a major shift toward socially responsible investing. Investor demographics, climate change conversations, and social justice matters are all changing business value systems and increasing the adoption of ESG investment approaches. Also, ESG reporting is now required for the European Union's 50,000 largest corporations. Keeping these developments in mind, this paper aims at analysing the impact of ESG on the stock valuation of European companies. In this paper, we contribute with a quantitative study that fills the gap in the literature regarding significant differences that are obtained in ESG and financial performance of FTSE 100. Environmental criteria consider how a company performs as a steward of nature. Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. Governance is concerned with the leadership of a company, executive pay, audits, internal controls, and shareholder rights. Multiple regression analysis is used in this work to demonstrate the relationship between the selected dependent and independent variables at one point in time.
Keywords ESG
Field Business Administration
Published In Volume 6, Issue 4, July-August 2024
Published On 2024-08-14
Cite This ESG Impact on Stock Valuation- An Empirical analysis of European Markets - Dr. Gaurav Barick, Saurobh Barick - IJFMR Volume 6, Issue 4, July-August 2024. DOI 10.36948/ijfmr.2024.v06i04.25762
DOI https://doi.org/10.36948/ijfmr.2024.v06i04.25762
Short DOI https://doi.org/gt65hc

Share this