| dc.description.abstract | This study investigates the connection between ESG scores and financial performance in Nordic markets, using ESG scores from Refinitiv and MSCI. We examine the impact of ESG on financial factors such as Revenue, ROA, ROE, Stock Return, and WACC. The results indicate a significant positive relationship between ESG combined score and ROA in both datasets, as well as a positive but not significant relationship with ROE. Additionally, we find a significant negative relationship with WACC in MSCI data, and Revenue in the Refinitiv data.
In terms of controls, the analysis shows that the effect of ESG on corporate financial performance is stronger for Danish firms. The analysis also shows that the year 2020 was the most significant negative year, potentially due to the COVID-19 pandemic.
Overall, the study concludes that ESG combined ratings have a significant positive impact on corporate performance, while E, S, and G separate ratings and ESG controversy ratings have inconclusive results. | |
