Analyzing the impact of ESG activities on the financial and investment performance of Russian companies

Subject. This article discusses the issues related to environmental, social and governance activities of companies, and their financial and investment indicators. Objectives. The article aims to assess the environmental, social and governance activities impact on the financial and investment performance of Russian companies. Methods. The empirical data contains observations on 56 Russian public companies evaluated within the framework of the ESG ranking by the RAEX Rating Agency. To assess the correlation between social, environmental, governance factors and financial and investment components of the activities of Russian corporations, a correlation matrix and panel regression based on panel data were constructed. Results. The article finds that a higher S-ranking has a positive effect on the financial leverage of the company, and E-, S- and G-rankings have a positive effect on the dividend yield. The results obtained are the theoretical basis for the development of agency and signal theories of corporate finance, and they are also applicable in practice to assess risk. Conclusions and Relevance. Shareholders should pay attention to the ESG performance indicators of their companies. Companies can use the results of the study to identify priority areas for the development of their activities.