Author(s)
Barikara Ramesh, Dr. Nirmala J
- ISSN (P): 3139-8464
- Manuscript ID: 140947
- Volume: 2
- Issue: 8
- Pages: 138–150
Subject Area: Management
Abstract
Environmental, Social, and Governance (ESG) reporting has emerged as a critical component of corporate transparency and sustainable business practices. This study examines the relationship between ESG reporting and financial performance in the public sector banks using evidence from companies listed on the Bombay Stock Exchange (BSE). The study uses secondary panel data of 12 major public sector banks over the period 2023–2024, comprising 24 observations. ESG scores along with their components Environmental (E), Social (S), and Governance (G) are analysed in relation to Return on Assets (ROA), along with control variables such as firm size and leverage. Regression analysis is employed to evaluate the impact of ESG factors on firm performance. The findings reveal that although the overall regression model is statistically significant, individual ESG variables do not show significant influence on financial performance. This is primarily attributed to multicollinearity among ESG components. The study contributes to the growing body of literature on ESG in emerging markets and highlights the importance of proper model specification in ESG research.