Gandharv Arora - Academia.edu (original) (raw)

Papers by Gandharv Arora

The Impacts of Environmental, Social and Governance Factors on Financial Performance Panel Study of Indian Firms, 2022

The ESG score, consisting of environmental, social and governance factors, represents the non-fin... more The ESG score, consisting of environmental, social and governance factors, represents the
non-financial performance of a firm. It is the quantitative measure of a firm’s CSR initiatives.
This paper presents the impact of ESG scores on a firm’s financial performance in Indian
companies. Utilising the Thomson Reuter ESG scores derived from the Refinitiv Eikon, this
research aims to conduct a panel study of 168 publicly traded Indian firms, with data ranging
from 2012 to 2021. It uses accounting- and market- based (ROA, ROE, DPS, Tobin’sQ,
WACC and CR) ratios and measures to study firm performance. Using SEBI’s recent
direction mandating top 1000 companies listed on Bombay Stock Exchange to report their
ESG activities using the new BRSR reporting standard, this paper intends to fill the lack of
research between a firm's financial performance and CSR/ESG practices in India. With
investment practices gradually orienting towards CSR, this paper advocates for a study on
Indian companies as it is the fastest growing developing economy. This paper acknowledges
the importance of examining this relationship as studies in other countries have presented
conflicting results. The research is grounded in the three theories of studying ESG namely;
Stakeholder, Slack Resource, and Principal-Agent Theories. As this is a new study on India,
the findings of this study will be useful to investors, SRI analysts, policymakers, household
investors and most importantly the common man. Based on the Fama-Macbeth estimation
model, the results of this study show positive effect of ESG on the ROA and Tobin’s Q to the
firm with an increase in DPS to its investors. While ESG is being maximised as the slack
resources increase in Indian companies

The Impacts of Environmental, Social and Governance Factors on Financial Performance Panel Study of Indian Firms, 2022

The ESG score, consisting of environmental, social and governance factors, represents the non-fin... more The ESG score, consisting of environmental, social and governance factors, represents the
non-financial performance of a firm. It is the quantitative measure of a firm’s CSR initiatives.
This paper presents the impact of ESG scores on a firm’s financial performance in Indian
companies. Utilising the Thomson Reuter ESG scores derived from the Refinitiv Eikon, this
research aims to conduct a panel study of 168 publicly traded Indian firms, with data ranging
from 2012 to 2021. It uses accounting- and market- based (ROA, ROE, DPS, Tobin’sQ,
WACC and CR) ratios and measures to study firm performance. Using SEBI’s recent
direction mandating top 1000 companies listed on Bombay Stock Exchange to report their
ESG activities using the new BRSR reporting standard, this paper intends to fill the lack of
research between a firm's financial performance and CSR/ESG practices in India. With
investment practices gradually orienting towards CSR, this paper advocates for a study on
Indian companies as it is the fastest growing developing economy. This paper acknowledges
the importance of examining this relationship as studies in other countries have presented
conflicting results. The research is grounded in the three theories of studying ESG namely;
Stakeholder, Slack Resource, and Principal-Agent Theories. As this is a new study on India,
the findings of this study will be useful to investors, SRI analysts, policymakers, household
investors and most importantly the common man. Based on the Fama-Macbeth estimation
model, the results of this study show positive effect of ESG on the ROA and Tobin’s Q to the
firm with an increase in DPS to its investors. While ESG is being maximised as the slack
resources increase in Indian companies