ESG and corporate finance

Abstract

t is known that issues of sustainability and responsible investing play an important role both in the corporate world and in society. This article discusses the concept of ESG investing, which has gained popularity and importance relatively recently. Describes the impact of high / efficient ESG performance on corporate finance, in particular on the financial performance of UK companies. The significance of each of the ESG sub-factors is described based on the works of other researchers. It also analyzed the changes in the corporate world that occurred during and after COVID-19. The purpose of this study is to clarify the importance and necessity of investing sustainably in ESG by supporting qualitative arguments and quantitative data with calculations and assumptions. Basic data comes from Bloomberg terminal and Yahoo Finance. To carry out this calculation, the event investigation method was applied, which consists of four event windows. The calculations were carried out in R Studio. Key results were obtained using the regression method.