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The relationship between ESG disclosure and corporate financial performance: a comparative study among developed and emerging markets companies
This study examines the impact of companies' environmental, social and governance (ESG) disclosure on corporate financial performance. It also compares this relationship among developed and emerging markets companies. The study was based on ESG scores from data obtained from Bloomberg. The sample da...
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| Format: | Thesis |
| Language: | English English |
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Department of Finance and Tax
2025
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| _version_ | 1867613226163765248 |
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| access_status_str | Open Access |
| author | Liang, Yanni |
| author2 | Pitt, Lucian |
| author_browse | Liang, Yanni Pitt, Lucian |
| author_facet | Pitt, Lucian Liang, Yanni |
| author_sort | Liang, Yanni |
| collection | Thesis |
| description | This study examines the impact of companies' environmental, social and governance (ESG) disclosure on corporate financial performance. It also compares this relationship among developed and emerging markets companies. The study was based on ESG scores from data obtained from Bloomberg. The sample data consisted of information from 2145 developed and 2023 emerging companies from 2015 to 2022. Using a Fixed-Effects panel regression model, the research results indicate that developed market companies represent higher ESG combined and sub-component scores than emerging market companies. This study finds that developed market companies' ESG performance is positively associated with financial performance (ROA) and market valuation (Tobin's Q). Companies in emerging markets showed a positive relationship between ESG scores and market valuation (Tobin's Q). Results also indicated a neutral relationship between ESG initiatives and emerging markets companies' ROA. Thus, the study implies that ESG investment is still in the early stage in emerging markets with room for growth, while developed market ESG performance is leading the way in terms of its impact on company performance. The results indicate that whilst the market recognises the potential benefit of ESG investment, it still has some way to go regarding translation into the company's book performance. This has significant implications for investment decisions. This study fills an existing gap in literature in understanding the relationship between company performance and investment in ESG, especially as it pertains to the difference in this relationship between companies in emerging and developed economies. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/42395 |
| institution | University of Cape Town (South Africa) |
| language | English eng |
| last_indexed | 2026-06-10T12:32:46.693Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2025 |
| publishDateRange | 2025 |
| publishDateSort | 2025 |
| publisher | Department of Finance and Tax |
| publisherStr | Department of Finance and Tax |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/42395 The relationship between ESG disclosure and corporate financial performance: a comparative study among developed and emerging markets companies Liang, Yanni Pitt, Lucian Market companies ESG Finance This study examines the impact of companies' environmental, social and governance (ESG) disclosure on corporate financial performance. It also compares this relationship among developed and emerging markets companies. The study was based on ESG scores from data obtained from Bloomberg. The sample data consisted of information from 2145 developed and 2023 emerging companies from 2015 to 2022. Using a Fixed-Effects panel regression model, the research results indicate that developed market companies represent higher ESG combined and sub-component scores than emerging market companies. This study finds that developed market companies' ESG performance is positively associated with financial performance (ROA) and market valuation (Tobin's Q). Companies in emerging markets showed a positive relationship between ESG scores and market valuation (Tobin's Q). Results also indicated a neutral relationship between ESG initiatives and emerging markets companies' ROA. Thus, the study implies that ESG investment is still in the early stage in emerging markets with room for growth, while developed market ESG performance is leading the way in terms of its impact on company performance. The results indicate that whilst the market recognises the potential benefit of ESG investment, it still has some way to go regarding translation into the company's book performance. This has significant implications for investment decisions. This study fills an existing gap in literature in understanding the relationship between company performance and investment in ESG, especially as it pertains to the difference in this relationship between companies in emerging and developed economies. 2025-12-03T13:54:20Z 2025-12-03T13:54:20Z 2025 2025-12-01T10:50:34Z Thesis / Dissertation Masters MCom http://hdl.handle.net/11427/42395 en eng application/pdf Department of Finance and Tax Faculty of Commerce University of Cape Town |
| spellingShingle | Market companies ESG Finance Liang, Yanni The relationship between ESG disclosure and corporate financial performance: a comparative study among developed and emerging markets companies |
| thesis_degree_str | Master's |
| title | The relationship between ESG disclosure and corporate financial performance: a comparative study among developed and emerging markets companies |
| title_full | The relationship between ESG disclosure and corporate financial performance: a comparative study among developed and emerging markets companies |
| title_fullStr | The relationship between ESG disclosure and corporate financial performance: a comparative study among developed and emerging markets companies |
| title_full_unstemmed | The relationship between ESG disclosure and corporate financial performance: a comparative study among developed and emerging markets companies |
| title_short | The relationship between ESG disclosure and corporate financial performance: a comparative study among developed and emerging markets companies |
| title_sort | relationship between esg disclosure and corporate financial performance a comparative study among developed and emerging markets companies |
| topic | Market companies ESG Finance |
| url | http://hdl.handle.net/11427/42395 |
| work_keys_str_mv | AT liangyanni therelationshipbetweenesgdisclosureandcorporatefinancialperformanceacomparativestudyamongdevelopedandemergingmarketscompanies AT liangyanni relationshipbetweenesgdisclosureandcorporatefinancialperformanceacomparativestudyamongdevelopedandemergingmarketscompanies |