Assessing the Influence of ESG Indicators on Corporate Financial Performance: Evidence from Panel Data Analysis
Mots-clés :
ESG criteria, financial performance, ROA, sustainability, econometric models, listed companies, fixed effet analysis, random effet analysisRésumé
The approach combines an international literature review and an empirical panel data analysis of French (CAC 40) and American (S&P 500) companies from 2021 to 2024. Three econometric panel data models (fixed effects, fixed effects with time dimensions, and random effects) were tested using Python.
Results show that ESG scores do not have an immediate significant effect on ROA. However, sectors such as technology and energy exhibit clearly higher profitability regardless of ESG scores. These findings suggest that ESG initiatives may produce long-term positive financial effects.
The study also highlights limitations related to the small sample size and availability of ESG data, while underlining the importance of further research in this field. It concludes that despite the lack of a direct short-term link, ESG criteria remain a strategic lever to strengthen company resilience and competitiveness.
JEL Classification: G30, G32, M14, Q56, C33
Paper type: Empirical research
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© Najlae YACHOU 2025
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