The Relationship Between Environment, Social and Governance and Firms' Performance: Evidence from Oil & Gas Companies
| Author | Al Eid, Abdulla Faisal | |
|---|---|---|
| metadata.dc.date.accessioned | 2026-09-20T15:46:22Z | |
| Publication date | 2024 | |
| Degree level | Master | |
| Abstract | Abstract: The aim of this study is to examine the impact of the environmental, social, and governance (ESG) disclosures on the firm's profitability and valuations of oil and gas companies in European Union countries and the Middle East countries. Based on the stakeholder theory, this study examined the impact of ESG factors on financial performance for 41 oil and gas companies operating in Europe and the Middle East during the period 2013-2022. Using multivariate regression models and panel data techniques several key findings emerge, including that companies with higher ESG scores show better financial performance, as measured by ROA and Tobin's Q. The profitability and market valuation of firms with sound ESG practices are enhanced. It is also found that various components of ESG and financial outcomes are associated with distinct relationships. While environmental factors show a negative association with ROA and Tobin's Q, social commitment scores demonstrate a positive association with ROA and firm valuation also corporate governance emerges as largest contributing factor positively impacting ROA. Additionally, this study underlines the relevance of understanding contextual factors such as firm size and financial leverage. The study found that firms with higher financial leverage have lower ROA, but the adverse effects diminish as the firm expands, underscoring the nuanced nature of these relationships. Taking a holistic view, this study shows that ESG considerations significantly influence the financial performance of the oil and gas firms. This study, which offers valuable insights for practitioners, policymakers, and investors alike, adds to the evolving body of literature on | |
| metadata.dc.identifier.other | https://digitalrepository.uob.edu.bh/id/e5918814-44ff-4bf0-94e5-0fd6d3f01ceb | |
| metadata.dc.identifier.other | Drupal node 2753 | |
| metadata.dc.identifier.other | https://digitalrepository.uob.edu.bh/en/dar/relationship-between-environment-social-and-governance-and-firms-performance-evidence-oil-gas | |
| metadata.dc.identifier.uri | http://165.227.56.122/handle/123456789/6416 | |
| Language | en | |
| Link | https://digitalrepository.uob.edu.bh/en/_flysystem/fedora/2025-02/2025-the-relationaship-between-environment-social-and-goverancce-and-firms-performance-evidence-from-o.pdf | |
| Title | The Relationship Between Environment, Social and Governance and Firms' Performance: Evidence from Oil & Gas Companies | |
| Type | Master's Thesis |
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