Environmental, Social, and Governance Performance and Financial Impacts: Comparative Analysis of Companies in Asia

Table of Contents

• Abstract 4
• 1. Introduction 5
• 2. Literature Review 7
• 2.1. Comparative ESG Performance 7
• 2.2. Financial Impacts of ESG Practices in Different Contexts 8
• 3. ESG Ratings and Performance Comparison 10
• 3.1. Comparison of ESG Rating Methods 10
• 3.2. Comparison of ESG Performance 11
• 4. Multilevel Regression Model 12
• 5. Empirical Results 13
• 5.1. ESG Performance of Firms in Asia 13
• 5.2. Financial Impacts of ESG Performance 14
• 5.3. Moderating Effects of Inclusive Wealth 15
• 6. Conclusion 16
• Tables and Figures 18
• Table 1: Comparison of ESG Rating Methods 18
• Table 2: Correlations Between ESG Performance and Carbon Performance 19
• Table 3: Descriptive Statistics 20
• Table 4: Multilevel Regression Results for the ESG Score 21
• Table 5: Effects of ESG Performance on Financial Performance 22
• Table 6: Financial Impact of ESG Performance Moderated by Inclusive Wealth per Capita 23
• Table 7: Financial Impact of ESG Moderated by Produced, Human, and Natural Capital per Capita 24
• Figure 1: Inconsistent Assessment Items Across ESG Raters 26
• Figure 2: Correlations Among ESG Scores from Different ESG Raters 27
• Figure 3: Comparison of ESG Scores by Region 28
• Figure 4: Economy Effect on ESG Performance 29
• Figure 5: Economy Effect on ESG Component Scores 30
• Figure 6: Financial Impacts of ESG Performance Across Economies 32
• Figure 7: Effects of ESG Scores on Return on Assets Across Economies 33
• Figure 8: Effects of ESG Scores on Tobin’s Q Across Economies 34
• Appendix 35
• Table A1: Sample Distribution by Year and Economy 35
• Table A2: The Relationships Between ESG Performance and Carbon Performance 36
• Table A3: Correlations Between ESG Performance and Carbon Performance for High- and Low-Carbon Intensity Groups 37
• References 38