A quantitative study investigating the effect Covid-19 had on the relationship between ESG and financial performance in the Nordic market. In order to achieve this objective, Tobin’s Q was used as a proxy of financial performance and tested against Refinitiv Eikon's ESG scores, which are made up of one ESG score and three separate pillars, Environmental (ENV), Social (SOC), and Governance (GOV). Based on 5 criteria 216 unique firms from the Nordic market were selected resulting in 862 observations over the years 2018-2021. The data was tested through four regression models, representing the different scores of ESG, ENV, SOC and GOV. To see the effect Covid-19 had on the relationship an interaction term was used. The results show that Covid-19 did not have a significant effect on the relationship for any of the scores of ESG and Tobin's Q. The results also showed a significant negative relationship between Tobin's Q and ESG, ENV and SOC. While Tobin's Q and GOV presented a non-significant negative relationship. In conclusion, a high ESG score did not result in a higher market value for organizations in the Nordic market and the Covid-19 pandemic did not have a significant effect on the relationship.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:uu-506022 |
| Date | January 2023 |
| Creators | Pettersson, Ellen, Travergård, Alina |
| Publisher | Uppsala universitet, Företagsekonomiska institutionen |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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