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Environmental, social and governance performance and firm value: new evidence from Indian firms

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  • Surbhi Jain
  • Teena Bagga

Abstract

The current empirical research investigates the impact of overall ESG performance and environmental score, social score and governance score individually on firm value. Our large dataset covering varied industries enabled us to comprehend and evaluate implication of ESG score on various aspects of firm value. The research provides important empirical evidence regarding positive and significant relationship between overall ESG score and firm value. This highlights the importance of considering ESG factors in evaluating a firm's performance. Additionally, the study revealed that environmental score, social score and governance score individually are positively and significantly related to firm value. Hence, it is important for firms to prioritise and improve their ESG performance across all dimensions to enhance their overall success and profitability.

Suggested Citation

  • Surbhi Jain & Teena Bagga, 2025. "Environmental, social and governance performance and firm value: new evidence from Indian firms," International Journal of Business Governance and Ethics, Inderscience Enterprises Ltd, vol. 19(5), pages 582-596.
  • Handle: RePEc:ids:ijbget:v:19:y:2025:i:5:p:582-596
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