<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>Observable climate change and an increase in the frequency of extreme climate events undoubtedly pose challenges for society and business operations. The changes being implemented in sustainability efforts are a response to these challenges. However, the question is how these measures affect companies‘ financial performance.</p>
<p>The study aims to verify the relationship between the reporting of sustainability scores related to three aspects: environmental, social, and corporate governance (ESG). It focuses on the financial performance of companies in the Central and Eastern Europe (CEE) region in 2017–2021. The study will use panel regression and cross-sectional analysis. The results indicate a positive relationship between the disclosure of ESG activities and the financial performance of companies as measured by ROA. It was also observed that for companies operating in the financial sector, the correlation is greater, compared to companies operating in other sectors. This study contributes to the ongoing debate on the environment, society, and governance in the economy.</p>
</abstract>

Observable climate change and an increase in the frequency of extreme climate events undoubtedly pose challenges for society and business operations. The changes being implemented in sustainability efforts are a response to these challenges. However, the question is how these measures affect companies‘ financial performance.
The study aims to verify the relationship between the reporting of sustainability scores related to three aspects: environmental, social, and corporate governance (ESG). It focuses on the financial performance of companies in the Central and Eastern Europe (CEE) region in 2017–2021. The study will use panel regression and cross-sectional analysis. The results indicate a positive relationship between the disclosure of ESG activities and the financial performance of companies as measured by ROA. It was also observed that for companies operating in the financial sector, the correlation is greater, compared to companies operating in other sectors. This study contributes to the ongoing debate on the environment, society, and governance in the economy.

Relationship between ESG and Financial Performance of Companies in the Central and Eastern European Region

Central European Economic Journal

This work is licensed under the Creative Commons Attribution 4.0 International License.

Observable climate change and an increase in the frequency of extreme climate events undoubtedly pose challenges for society and business operations. The...

Relationship between ESG and Financial Performance of Companies in the Central and Eastern European Region

Publicado en línea: 30 abr 2024

Páginas: 178 - 199

DOI: https://doi.org/10.2478/ceej-2024-0013

Palabras clave
ESG reporting, ESG policy, profitability, Central and Eastern Europe

© 2024 Karolina Siwiec et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Relationship between ESG and Financial Performance of Companies in the Central and Eastern European Region

Publicado en línea: 30 abr 2024

Páginas: 178 - 199

DOI: https://doi.org/10.2478/ceej-2024-0013

Palabras claveESG reporting, ESG policy, profitability, Central and Eastern Europe

© 2024 Karolina Siwiec et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Palabras clave
ESG reporting, ESG policy, profitability, Central and Eastern Europe