The Impact of International Environmental Standards on Corporate Financial Performance: An Economic and Legal Analysis
https://doi.org/10.31249/kgt/2024.06.05
Abstract
The article focuses on analyzing the relationship between investor reactions to a company’s compliance with international environmental standards and its financial performance. This analysis helps determine whether investor responses to a company’s actions or inactions regarding such compliance affect its financial efficiency. Using the experiences of Russian and foreign companies as examples, the article describes how adherence to international environmental standards influences business-investor relations and how investor reactions to companies complying with these standards may contribute to the growth of their market capitalization. The analysis examines the connection between investor responses to ESG reports published by companies and performance indicators such as ROA, ROE, and market capitalization, drawing on examples from several resource companies, the aviation industry, and the banking sector. The author concludes that compliance with international environmental standards has a positive impact on a company’s financial performance, provided that the company maintains relatively stable financial conditions and operates in a favorable economic environment. However, during market crises – such as the pandemic or the imposition of economic sanctions – an effective ESG policy cannot fully prevent a decline in market capitalization. According to the author, the trend of popularizing international environmental standards within the business community is likely to continue, as compliance with such standards can offer companies a tangible market advantage under favorable external conditions.
About the Author
V. A. Gabrielov
National Research University Higher School of Economics
Russian Federation
Vadim A. GABRIELOV
Russian Federation
Vadim A. GABRIELOV
PhD Student of the Department of International Law
Myasnickaya Street 20, Moscow, 101000
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Review
For citations:
Gabrielov V.A. The Impact of International Environmental Standards on Corporate Financial Performance: An Economic and Legal Analysis. Outlines of global transformations: politics, economics, law. 2024;17(6):74–91. (In Russ.) https://doi.org/10.31249/kgt/2024.06.05
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