Estimating the impact of the CSRD announcement and implementation on firm performance: A Quantitative Study Across European Firms
(2025) BUSN79 20251Department of Business Administration
- Abstract
- Purpose: The purpose of this thesis is to investigate the effects of the announcement and implementation of the EU’s Corporate Sustainability Reporting Directive (CSRD) on ESG scores and individual pillar scores of firms. Furthermore, this thesis investigates the impact of firm ESG scores on firm performance.
Methodology: This thesis uses Difference-in-Differences and Regression Discontinuity Design models to evaluate the impact of the CSRD announcement and implementation on ESG performance within EU firms. Furthermore, Pooled Ordinary Least Squares and Fixed Effects models were employed to research the effect of ESG performance on firm performance within EU companies.
Theoretical perspectives: The theoretical literature employed in... (More) - Purpose: The purpose of this thesis is to investigate the effects of the announcement and implementation of the EU’s Corporate Sustainability Reporting Directive (CSRD) on ESG scores and individual pillar scores of firms. Furthermore, this thesis investigates the impact of firm ESG scores on firm performance.
Methodology: This thesis uses Difference-in-Differences and Regression Discontinuity Design models to evaluate the impact of the CSRD announcement and implementation on ESG performance within EU firms. Furthermore, Pooled Ordinary Least Squares and Fixed Effects models were employed to research the effect of ESG performance on firm performance within EU companies.
Theoretical perspectives: The theoretical literature employed in this paper are the principal-agent theory, legitimacy theory and signaling theory.
Empirical foundation: The study included a sample of 1’223 firms headquartered in the EU covering the period from 2015 to 2024.
Conclusion: The study did not find evidence that the announcement of the CSRD, or the implementation of it, led to statistically significant changes in ESG scores or individual pillar scores. However, the study did find evidence to support the claim that ESG scores are positively associated with Tobin’s Q (as a proxy measure for firm performance). Nonetheless, when employing a FE model and controlling for time-invariant firm specific characteristics the results did not find a statistically significant positive association between ESG scores, or the individual pillar scores, and firm performance. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9196795
- author
- Bürgin, Jan LU and Ottosson, Johan LU
- supervisor
- organization
- course
- BUSN79 20251
- year
- 2025
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- ESG, CSRD, regulatory announcement, regulatory implementation, firm performance
- language
- English
- id
- 9196795
- date added to LUP
- 2025-06-26 13:42:08
- date last changed
- 2025-06-26 13:42:08
@misc{9196795,
abstract = {{Purpose: The purpose of this thesis is to investigate the effects of the announcement and implementation of the EU’s Corporate Sustainability Reporting Directive (CSRD) on ESG scores and individual pillar scores of firms. Furthermore, this thesis investigates the impact of firm ESG scores on firm performance.
Methodology: This thesis uses Difference-in-Differences and Regression Discontinuity Design models to evaluate the impact of the CSRD announcement and implementation on ESG performance within EU firms. Furthermore, Pooled Ordinary Least Squares and Fixed Effects models were employed to research the effect of ESG performance on firm performance within EU companies.
Theoretical perspectives: The theoretical literature employed in this paper are the principal-agent theory, legitimacy theory and signaling theory.
Empirical foundation: The study included a sample of 1’223 firms headquartered in the EU covering the period from 2015 to 2024.
Conclusion: The study did not find evidence that the announcement of the CSRD, or the implementation of it, led to statistically significant changes in ESG scores or individual pillar scores. However, the study did find evidence to support the claim that ESG scores are positively associated with Tobin’s Q (as a proxy measure for firm performance). Nonetheless, when employing a FE model and controlling for time-invariant firm specific characteristics the results did not find a statistically significant positive association between ESG scores, or the individual pillar scores, and firm performance.}},
author = {{Bürgin, Jan and Ottosson, Johan}},
language = {{eng}},
note = {{Student Paper}},
title = {{Estimating the impact of the CSRD announcement and implementation on firm performance: A Quantitative Study Across European Firms}},
year = {{2025}},
}