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Environmental, social and governance (ESG) performance and firm performance in India

Santi Gopal Maji (Department of Commerce, Tezpur University, Tezpur, India)
Prachi Lohia (Department of Commerce, Tezpur University, Tezpur, India)

Society and Business Review

ISSN: 1746-5680

Article publication date: 30 December 2022

Issue publication date: 2 February 2023




This paper aims to investigate the impact of environmental, social and governance (ESG) performance on the firm performance of select Indian companies.


The present paper is a cross-section study based on secondary data with a sample of 222 Indian firms. The ESG performance for Indian companies is based on the Credit Rating Information Services of India Limited (CRISIL) ESG score, and the financial data are extracted from the ACE Equity database. Both accounting- and market-based measures of firm performance are used. Ordinary least squares and simultaneous quantile regression models are used for empirical investigation.


The study reveals that Indian firms focus much more on governance and social parameters than environmental ones. The results indicate that ESG performance and its components are positively associated with firm performance. The results of quantile regression show that the impact of ESG is different at different locations of the conditional distribution of firm performance and the positive impact is more pronounced at upper quantiles.


To the best of the authors’ knowledge, this is the first study in India based on the CRISIL ESG score for analyzing the ESG and firm performance relationship. Furthermore, in the Indian context, a modest attempt is made to study the influence of ESG performance at different locations of the distribution of firm performance by using quantile regression.



Maji, S.G. and Lohia, P. (2023), "Environmental, social and governance (ESG) performance and firm performance in India", Society and Business Review, Vol. 18 No. 1, pp. 175-194.



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