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Corporate Sustainability, Capital Markets, and ESG Performance

  • Alexandre S. GarciaEmail author
  • Wesley Mendes-Da-Silva
  • Renato J. Orsato
Chapter

Abstract

This chapter discusses associations between the financial profile of a firm and superior environmental, social, and governance (ESG) performance, considering firms from Brazil, Russia, India, China, and South Africa (the so-called BRICS countries). In particular, the study analyzes ESG performance in sensitive industries, i.e., those subject to systematic social taboos, moral debates, and political pressures and those that are more likely to cause social and environmental damage. We applied linear regressions with a data panel collected from 365 listed companies between 2010 and 2012. Our results suggest the market capitalization as the main predictor of ESG performance. In general, larger companies have higher levels of performance. We also found that companies in sensitive industries present superior environmental performance even when controlling for size and country. Our conclusions provide insights for future studies around ESG performance.

Keywords

Corporate social responsibility (CSR) Environmental, social, and governance (ESG) performance Sustainability index BRICS 

JEL Code

F18 G34 M14 

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Copyright information

© Springer International Publishing AG, part of Springer Nature 2019

Authors and Affiliations

  • Alexandre S. Garcia
    • 1
    Email author
  • Wesley Mendes-Da-Silva
    • 2
    • 3
  • Renato J. Orsato
    • 4
  1. 1.Centro Universitario FecapSao PauloBrazil
  2. 2.Sao Paulo School of Business Administration (FGV/EAESP)Sao PauloBrazil
  3. 3.University of Texas at AustinAustinUSA
  4. 4.Department of Operations ManagementFundação Getulio Vargas at São Paulo (FGV/EAESP)Sao PauloBrazil

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