A Study of Financial Sustainability under ESG Approach: An Empirical Analysis of Nifty 100 Index Companies

Abstract

: With Securities and Exchange Board of India (SEBI) circular dated 10 May 2021 on business responsibility and sustainability reporting disclosures of listed entities, it is inevitable to undertake a study on the determinants impacting the sustainability of the companies with emphasis on Environment, Society and Governance (ESG) approach. The objective of the paper is to analyze financial sustainability of the Nifty 100 Index Companies for the period 2014-2015 to 2019-2020 with especial focus on ESG phenomenon. The Panel data is modeled in term of regression equation. The variables modeled are capital structure, employee size, size of the business, liquidity, social responsibility, environment, governance and return on asset. The findings are out of eight variables taken into study six are significant and impacting the financial sustainability. The variables employee size, society and governance are positive significant. The variables size, liquidity and environment are negatively impacting the financial sustainability. The findings are relevant both for the corporate world and the government.