Confirmation of Candidature - Corporate Environmental, Social, and Carbon Performance and Financial Performance: The Roles of Corporate Governance Quality and ESG Controversies

This study will investigate the impact of corporate environmental, social, and carbon performance as drivers of the financial performance of companies listed on the Australian Securities Exchange (ASX). Furthermore, it will examine the moderating role of corporate governance and the Environmental, Social, and Governance Controversies score in these relationships. The sample will include all ASX-listed companies during the period 2004-2023.

This study will use secondary data already collected from the London Stock Exchange Group LSEG (ex-Thomson Reuters' Refinitiv Database). Panel data regression models will be used to evaluate these relationships. The robustness of the results will be checked by using alternative measures for the key variables, using alternative model specifications, and dropping financial crisis years from the sample.

This study will make important contributions to literature and practice. While prior literature extensively examines the impact of corporate environmental performance (CEP), corporate social performance (CSP), and corporate carbon performance (CCP) on organizational outcomes, the studies that identified a specific nexus between these variables and Financial Performance (FP) within the Australian context remain limited. Notably, scant empirical investigation has been undertaken to elucidate the moderating influence of CG and ESGCS factors on the relationships between CEP, CSP, CCP, and FP.

This study addresses this gap by leveraging LSEG's comprehensive dataset to investigate these dynamics among ASX-listed. From a practical standpoint, the findings of this research are expected to offer valuable insights and implications for multiple stakeholders, including investors, corporate managers, and policymakers, who are increasingly recognizing the significance of sustainable business practices.

Keywords: Environmental performance, social performance, carbon performance, ESG controversies score, financial performance, corporate governance, Australian Securities Exchange.

For more information, please email the Graduate Research School or phone 0746 311088.