ESG practices and their effect on corporate financial performance: empirical analysis in the Brazilian stock market.
DOI:
https://doi.org/10.18041/2619-4244/dl.31.10195Keywords:
ESG practices, financial performance, Ibovespa, brazilian companies, causalityAbstract
In the current business context, the quality of Environmental, Social and Governance (ESG) practices adopted by companies are increasingly valued by different institutional interest groups. In this context, the article studies the relationship between the quality of ESG practices and the corporate financial performance of Brazilian companies listed on financial markets. The data used comes from Bloomberg, with an observation window between 2014 and 2018. The empirical strategy is developed through an unbalanced data panel with fixed effects and incorporates quantile and causality analyses. The results show that the quality of ESG practices implemented by Brazilian companies have a positive relationship with profitability, company value and access to long-term financing; which leads to better performance in the market and with its stakeholders
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