Impact of ESG Performance on Corporate Performance After the Pandemic Era
(2024) IBUH19 20241Department of Business Administration
- Abstract (Swedish)
- This research examined how ESG factors affected organizational performance in the post-pandemic year of 2022 for 271 large-cap firms in the Nordic Stock Exchange market. The study adopted a deductive research approach to establish how ESG practices impacted corporate resilience and financial performance during this period. Only secondary data sources were used for data gathering, and the analysis employed descriptive and inferential statistical tools, including multiple linear regression analysis, to test the correlation between ESG factors and corporate performance measures such as Profit Margins. The analysis revealed that, among the three ESG dimensions, only the Social dimension had a significant and positive impact on Profit Margins,... (More)
- This research examined how ESG factors affected organizational performance in the post-pandemic year of 2022 for 271 large-cap firms in the Nordic Stock Exchange market. The study adopted a deductive research approach to establish how ESG practices impacted corporate resilience and financial performance during this period. Only secondary data sources were used for data gathering, and the analysis employed descriptive and inferential statistical tools, including multiple linear regression analysis, to test the correlation between ESG factors and corporate performance measures such as Profit Margins. The analysis revealed that, among the three ESG dimensions, only the Social dimension had a significant and positive impact on Profit Margins, with a coefficient of 0.045, though it was not statistically significant (p = 0.521). In contrast, the Environmental dimension showed a negative but non-significant effect on Profit Margins (B = -0.022, p = 0.664), while the Governance dimension had a positive but non-significant effect (B = 0.157, p = 0.013).
Based on the results, social issues practices could be a strategic factor in developing the corporate immunity during the post pandemic period, and the direct financial impact of environmental and corporate governance issues were not identified clearly. Hence, companies are encouraged to consider improving the social aspect of ESG and make changes that would allow it to better contribute to the firm’s performance and potential shocks in the global market. However, the study has the following limitations: the data used are relatively from a single year and concentrates only on a number of large-cap firms from the Nordic countries. Such limitations may restrict the transferability of the results and the possibility to observe the long-term effects of ESG on the firm. Subsequent studies should focus on the longer periods in an effort to enhance understanding of the ESG effects in other horizons besides sampled span and a wide population to establish the effects of ESG in various settings. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9174593
- author
- Yan, Ziyao LU and Zhan, Yibo LU
- supervisor
- organization
- course
- IBUH19 20241
- year
- 2024
- type
- M2 - Bachelor Degree
- subject
- language
- English
- id
- 9174593
- date added to LUP
- 2024-09-16 16:13:07
- date last changed
- 2024-09-16 16:13:07
@misc{9174593,
abstract = {{This research examined how ESG factors affected organizational performance in the post-pandemic year of 2022 for 271 large-cap firms in the Nordic Stock Exchange market. The study adopted a deductive research approach to establish how ESG practices impacted corporate resilience and financial performance during this period. Only secondary data sources were used for data gathering, and the analysis employed descriptive and inferential statistical tools, including multiple linear regression analysis, to test the correlation between ESG factors and corporate performance measures such as Profit Margins. The analysis revealed that, among the three ESG dimensions, only the Social dimension had a significant and positive impact on Profit Margins, with a coefficient of 0.045, though it was not statistically significant (p = 0.521). In contrast, the Environmental dimension showed a negative but non-significant effect on Profit Margins (B = -0.022, p = 0.664), while the Governance dimension had a positive but non-significant effect (B = 0.157, p = 0.013).
Based on the results, social issues practices could be a strategic factor in developing the corporate immunity during the post pandemic period, and the direct financial impact of environmental and corporate governance issues were not identified clearly. Hence, companies are encouraged to consider improving the social aspect of ESG and make changes that would allow it to better contribute to the firm’s performance and potential shocks in the global market. However, the study has the following limitations: the data used are relatively from a single year and concentrates only on a number of large-cap firms from the Nordic countries. Such limitations may restrict the transferability of the results and the possibility to observe the long-term effects of ESG on the firm. Subsequent studies should focus on the longer periods in an effort to enhance understanding of the ESG effects in other horizons besides sampled span and a wide population to establish the effects of ESG in various settings.}},
author = {{Yan, Ziyao and Zhan, Yibo}},
language = {{eng}},
note = {{Student Paper}},
title = {{Impact of ESG Performance on Corporate Performance After the Pandemic Era}},
year = {{2024}},
}