Do ESG had influence on Return on Investments of BRICS listed Stock Exchanges:An Empirical Study

Abstract

Objective: The current study aimed to identify which factor of ESG influences on return on investment of the select BRICS nations during pandemic. Method: To attain the proposed objective, the total population of BRICS nations listed in the Refinitiv Model Conversion Tracking Sheet was considered. Out of the 150 BRICS nations listed, 122 companies (81%) were selected for the study. Secondary data from the Refinitiv Eikon database for 2021-22 was used. PLS Algorithm was applied to investigate the relationship between ESG and its correlation to financial performance. Results: The results suggest that the ESG factors influence the financial performance of the selected BRICS nations during the COVID-19 period. Further, the Combined ESG score and Controversies influenced the financial performance measured on the Return on Sales (ROS). Conclusion: ESG goals have become ever more predominant during COVID-19 in every economy but identifying which factor of ESG is influencing the performance of listed BRICS companies is yet to be investigated. The current study addresses this gap by identifying the ESG factors affecting financial performance during the COVID-19 period.