ESG IN CORPORATE FINANCE: DOES IT AFFECT ECONOMIC PERFORMANCE OF THE FIRMS?

Abstract

In the rapidly evolving landscape of corporate finance, Environmental, Social, and Governance (ESG) considerations have become pivotal. Far from being mere checkboxes for corporate responsibility, ESG factors are now central to strategic business decisions, influencing transactions, investment flows, and capital allocation. This article delves into how ESG integration impacts corporate economic performance, exploring both its direct and indirect effects on business transactions and overall financial health.