The symbiosis of ESG principles and financial performance: a longitudinal analysis of emerging markets through education policy
Аннотация
The aim of this study is to explore the long-term relationship between ESG principle compliance and financial performance of firms in the emerging market of Uzbekistan over a span of eleven years (2014-2024). According to panel data of 80 companies traded on the Tashkent Stock Exchange and employing regression models, the findings indicated that improving the composite ESG score has a statistically significant and positive influence on financial performance metrics. Specifically, one unit increase in the ESG score was associated with a 0.058-point improvement in return on assets (ROA). Further, the greatest impact of the three dimensions was «corporate governance», and sub-sample analyses also showed that there was greater effect of ESG on small and medium-sized firm performance compared to large firms. In conclusion, the findings suggest that in the context of Uzbekistanʼs emerging economy, using sustainable practices is not just an ethical imperative but a sound business decision.