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Fueling Financial Sustainability in Emerging Markets: An Investigation of ESG Public Policy and Other Determinants in the Oil and Gas Industry through Effective Financial Planning

Author

Listed:
  • Zhakupova Aizada

    (Narxoz University, Kazakhstan)

  • Arystanbayeva Saule

    (Narxoz University, Kazakhstan)

  • Issakhova Parida

    (Almaty Management University, Kazakhstan,)

  • Shakbutova Aliya

    (Almaty Management University, Kazakhstan,)

  • Alimshan Faizulayev

    (Bang College of Business, Kimep University, Kazakhstan.)

Abstract

This article's major goal is to pinpoint the variables that affect the capital structure and financial viability of the oil and gas sector in the regions that make up the Eurasian Economic Union. Data on oil and gas businesses in the Eurasian Union from 2012 to 2020 were gathered using the Orbis Database. All currently operating businesses with recent financial data were painstakingly obtained. 2,757 businesses with pertinent financial data in total were gathered. It includes a broad variety of oil and gas firms that have so far been the subject of inquiry. The results show that firm-specific factors are very important in determining the financial viability of oil and gas enterprises in the EUEA regions. For instance, both size and tax policy matter in driving the financial sustainability and leverage of companies. Furthermore, in contrast to CAPSTR, the oil price has had an enormous positive impact on the financial sustainability of oil and gas companies in EAEU regions. The results illustrate that ESG factors substantially affect financial sustainability in a negative way. The results show that oil and gas businesses use cutting-edge, environmentally friendly technologies in accordance with ESG Public Policy. Managers should continue to improve their strategies based on the growth of their businesses by utilizing new cutting-edge environmentally friendly technologies that will be suitable for stringent ESG Public Policy regulations. Overall results indicate that managers and practitioners should work on new strategies for expansion and penetration into the new markets in the EUEA regions.

Suggested Citation

  • Zhakupova Aizada & Arystanbayeva Saule & Issakhova Parida & Shakbutova Aliya & Alimshan Faizulayev, 2023. "Fueling Financial Sustainability in Emerging Markets: An Investigation of ESG Public Policy and Other Determinants in the Oil and Gas Industry through Effective Financial Planning," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 365-374, July.
    • Handle: RePEc:eco:journ2:2023-04-38
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    References listed on IDEAS

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    Cited by:

    1. Marina Nazir & Minhas Akbar & Xiaohong Yu & Ammar Hussain & Libuše Svobodová, 2024. "Environmental, social, and governance performance as an influencing factor of financial sustainability: Evidence from the global high‐tech sector," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 4746-4758, September.

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    More about this item

    Keywords

    Financial Sustainability; EUEA; ESG Public Policy; Oil and Gas Industry; Energy Source;
    All these keywords.

    JEL classification:

    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • F3 - International Economics - - International Finance
    • B23 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Econometrics; Quantitative and Mathematical Studies

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