Предизвикателства и тенденции в корпоративната устойчивост и влиянието и върху корпоративните финансови резултати
Challenges and Trends of Corporate Sustainability and the Impact on Corporate Financial Performance

Author(s): Katerina Vojcheska-Nikodinoska
Subject(s): Politics / Political Sciences, Politics, Social Sciences, Economy, Business Economy / Management, Governance, Sociology, Economic policy, Evaluation research, Management and complex organizations, Sociology of the arts, business, education, Economic development, Socio-Economic Research
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: corporate sustainability; sustainable frameworks; ESG; financial performance measurement
Summary/Abstract: The topic of sustainability in relation to the economy is not something new or an issue that has emerged in the last few years. One of the first studies was done by Bowen (1953), and it mainly focused on the social responsibility of managers and their impact on the lives of people in society. Then, various studies appeared in the field of the relationship between sustainability and economic development. The dependence is mainly in line with the legitimacy theory, according to which in order to carry out their activities, companies must ensure that they operate efficiently and respect social boundaries and norms in order to be more profitable and valuable. This study aims to conduct a literature review regarding the impact of environmental, social and governance (ESG) scores on the value and profitability of the firm. The main findings show that the overall combined score of ESG scores positively influences and is significantly related to the value of the firm. Individual social and governance scores have a positive and significant relationship, while the environmental score has no significant relationship with the firm value. The main recommendation provided to the various board members of companies in the EU region is to follow ESG principles and guidelines and hold more cash, as this should significantly increase the value of the company.

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