Financial Performance and Large Sustainable Companies: What Relationships in the Italian Blue Chips of the MIB ESG Index?
Financial Performance and Large Sustainable Companies: What Relationships in the Italian Blue Chips of the MIB ESG Index?

Author(s): Annalisa Baldissera
Subject(s): Energy and Environmental Studies, Financial Markets
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: ESG; Blue Chips; MIB ESG Index; Italian companies; Financial performance; ESG erformance; Sustainability
Summary/Abstract: This study aims to analyze the relationship between financial performance and ESG performance with particular reference to a market segment characterized by high liquidity. The research concerns, in fact, the Italian blue chips that make up the MIB ESG index, that is, the first forty companies among the best sixties. The methodology used is based on a sample of the top ten companies in the index and uses regression analysis, assuming liquidity ratio, debt ratio, ROE and ROA as independent variables, while dependent variables are ESG scores. The results show that relationships between variables are mostly positive. However, they are still rather weak and therefore have room for improvement. The study helps to deepen the knowledge of a market segment still little studied in the literature.

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