The Impact Of Esg Index On Corporate Value Case Study Of Large Capitalization Listed Corporate In India

Abstract

This study examines the correlation between ESG transparency and the corporate value of large-cap Indian companies listed. The research model employed in this study, based on previous related research, incorporates Tobin Q as the dependent variable and three independent variables including the Environmental policy stringency index (EPSE), Social policy stringency index (SPS), and Governance policy stringency index (GPS). In addition, this article includes five control variables, including growth rate, leverage, cash holding ratio, tangible assets, and company size. Data spanning six years, from 2017 to 2022, was gathered to examine the correlation between coverage and up-to-date information. A regression model was employed to ascertain the connection between these variables and business value. As a result, social and governance factors positively impact corporate value, while environmental factors are not statistically significant